This paper examines the effects of health-oriented food tax reforms on the distribution of tax payments, food demand and health outcomes. Unlike earlier work, we also take into account the uncertainty related to both demand estimation and health estimates and report the confidence intervals for...

This study addresses environmental tax reforms in a many-person economy. Starting from a situation of uniform commodity taxation, a tax reform raising the tax on a good complementary to leisure or on a good that is environmentally harmful may be seen as welfare-improving as long as environmental...

Using the self-selection approach to tax analysis within an OLG framework, the paper examines optimal non-linear labour and capital income taxation and the provision of a durable public good. Under endogenous wages, the marginal tax rules depend on the influence of the tax instruments on...

This studyexamines the choice between specific and ad valorem taxes when the production of a good, produced under imperfect competition, creates harmful externalities. The optimal tax system is shown to rely on wholly ad valorem (specific) taxation if the valuation of the distortion arising from...

Public provision of private goods is examined within a self-selection framework where production depends on labor supply of different households and the level of public provision. It is shown that productivity and wage-structure effects can create a role for public provision, even if preferences...

We analyze the decision rules governing public employment policy, capital allocation between private and public sector, and the size of the public sector in a two-type and two-sector optimal nonlinear income-tax model with endogenous wages. The government can reduce wage inequality in the...

This paper analyses the optimal tax policy and public provision of private goods when individuals differ in two respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the decentralised optimum, if society's marginal valuation...

The paper studies the trade-off between efficiency and equity objectives within a model of commodity taxation. It derives two formulations for a many-person Ramsey tax rule in the presence of externalities. The first tax rule reveals that the aggregate compensated decrease in the demand for a...

Low-wage subsidies are often proposed as a solution to the unemployment problem among the low skilled but the empirical evidence on their effects is still scarce. This paper examines the employment effects of a Finnish payroll tax subsidy scheme, which is targeted at the employers of older,...

This paper analyses the optimal tax policy and public provision of private goods when individuals differ in two respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the decentralised optimum, if society's marginal valuation...