This paper examines the macroeconomic effects of unexpected, exogenous, simultaneous, temporary cuts to income tax rates in an economy when the government follows a balanced budget fiscal rule and keeps money supply constant, and private agents face constraints on the ability to finance...

Taking rational decisions in a company, both current and strategic, requires knowing and taking into consideration the external conditions of the conducted activity. The accuracy of decisions made, as well as the ability to adjust to a changing external environment determines not only the...

This study computes estimates of tax compliance in selected European countries for value added tax, excise tax, personal income tax and social security contributions, using national accounts data together with data on official tax structures and revenues. These estimates are then analysed to...

Revenue from taxation has become more volatile after the global financial crisis. In this paper we provide a mean-variance analysis for key taxation components in the Irish fiscal accounts. This approach is a useful complement to the more standard measures of fiscal developments, which typically...

We present a theory linking political and social trust to explain trust erosion in modern societies. Individuals disagree on the seriousness of an externality problem, which leads to diverging policy opinions on how to solve it. This heterogeneity has two important effects on trust. First,...

To meet the needs of a broad set of internal and external stakeholders now and into the future the Australian Treasury maintains a significant macroeconomic modelling capability. Treasury's current inhouse capability is similar to that of the US Congressional Budget Office (CBO) and the Joint...

This article seeks to explain why Spanish merino wools arrived so late in the Low Countries, only from the 1420s, why initially only those cloth producers known as the 'nouvelles draperies' chose to use them, and why their resort to such merino wools allowed at least some of them to escape the...

This contribution investigates the effictiveness and welfare implications of fiscal policies in a context of multilateral trade, when traders behave strategically. The present approach deals simultaneously with two aspects of fiscal policies: collecting resources for redistributive purposes and...

Andreoni (1993) has shown in an experimental study that crowding out is incomplete when an involuntary lump-sum tax is levied exogenously on individuals to finance the provision of a public good. In this paper, we (i) replicate Andreoni's experimental conditions, and (ii) introduce treatments...

This study computes estimates of tax compliance in selected European countries for value added tax, excise tax, personal income tax and social security contributions, using national accounts data together with data on official tax structures and revenues. These estimates are then analysed to...