The paper gives a systematic treatment of equivalent tax systems within an intertemporal framework.

The paper provides a theory where the size of the inspection authority and the size of the fines evolve endogenously. We find that if a society cannot commit to future taxes it may gain form committing to a small Inland Revenue Service and small punishments for tax evasion. The possibility of...

This paper examines optimum inflation in the context of a positive requirement for government revenue, to be financed by distrotionary taxation, and a monetary system where bank deposits coexist with currency.

Using a finite-horizon general equilibrium model with uncertainty and money, we characterize situations where tax arbitrage opportunities may arise for international portfolio investors in an economy with heterogeneous capital income taxation where foreign currency exposure can be hedged using...

Within an open economy, redistributive taxation makes home output scarcer, thereby improving the terms of trade all else equal. This can generate too much taxation and unemployment, and excess taxation tends to shrink, not grow, the larger the economy.

Tax earmarking imposes a constraint on government policymaking, and may be desirable if it solves a time-inconsistency problem in tax policy. In a two-period economy, in which the policy decisions regarding taxes, public goods provision, and pollution abatement are taken by a majority-elected...

This paper reviews the recent optimal dynamic tax literature, and links the results from dynastic one-person economies, dynastic heterogeneous individual economies and overlapping generations economies. The paper shows that the second best labour tax is positive, and further analyses the dynamic...

The paper explores the hypothesis of a double divident from environmental taxation. It is argued that an environmental tax reform, i.e. shifting the burden of taxation away from labour toward the environment can improve environmental quality, boost employment and increase welfare. The paper...