This paper explores the role of government policies in a situation where the wage gap between high-skilled and low-skilled workers is widening due to increasing foreign competition in the manufacturing of low-skilled intensive goods. A two-period, two-sector general equilibrium model of a small...

Conventional wisdom has it that proportional representation leads to more coalition governments and so to greater government spending, especially in redistributive categories favoured by special-interest groups. In contrast, we show in a theoretical model that first-past-the-post systems of...

In this article, Michael Smart presents evidence on the evolution of top tax rates and tax progressivity since 1982. While top tax rates have recently increased substantially, the impact of these changes on redistribution through the tax system has been rather small to date. Smart suggests some...

This report presents and discusses the findings of the "Study to quantify and analyse the VAT Gap in the EU-27 Member States", conducted by CASE and CPB. The main aim of the study was to help better understand the recent trends in the field of VAT fraud and analyse determinants of VAT Gaps using...

We develop a theory of cross-border income shifting in response to subnational personal taxation in a federation and examine its implications for the excess burden of personal taxes. We show how a properly-chosen federal tax rate can offset the fiscal externality between states and facilitate...

We develop a theory of cross-border income shifting in response to subnational personal taxation in a federation and examine its implications for the excess burden of personal taxes. We show how a properly-chosen federal tax rate can offset the fiscal externality between states and facilitate...