Large and growing levels of public debt in the United States, United Kingdom, Japan and the Euro Area raise new interest in the cross-country effects of a large open economy's deficits. The authors consider a dynamic optimising model with costly tax collection and exogenously given public...

The author reviews recent studies that investigate how social status concerns influence individual preferences for redistribution and impact the design of optimal tax policies. He focuses on two aspects: the relevant dimension over which relative concerns are defined and the different...

With capital-skill complementarity, the secular decline in the price of capital equipment due to equipment-specific technological progress (ESTP) keeps pushing up the demand for skilled relative to unskilled labor and raising the skill premium. This paper quantitatively characterizes the...

Der britische Finanzminister rechtfertigte die jüngste Senkung des Einkommensteuer- Spitzensatzes in Großbritannien mit optimalsteuertheoretischen Argumenten. Dieser Beitrag legt die zugrunde liegende Argumentation dar, die auf den Analysen im Mirrlees Review zum britischen Steuersystem...

This paper, intended for researchers, introduces a stochastic method for calculating the optimal tax schedule based on taxpayer utility, population skill distribution, and wages. It implements and extends the classic approach to optimal income tax calculation introduced by J.A. Mirrlees. A...

In the present work we try to find out whether the existence of positive international externalities generates an incentive for cooperation between governments and if the adoption of a transfer payments scheme moderates that intensive. We adopt a simple economic model incorporating the...

The aim of this paper is to study the relationship between the intertemporal behavior of taxes and wealth distribution. The optimal-taxation literature has often concentrated on representative-agent models, in which it is optimal to smooth distortionary taxes. When tax liabilities are unevenly...

Purpose: Putting forward policy proposes to improve the tax policy of the logistics industry. Design/methodology/approach: Based on Cobb-Douglas production function model, combined theoretical analysis, this paper puts forward Cobb-Douglas production function expansion model, and using the...

This paper studies optimal taxation of bequests in a model where altruistic parents and their offspring disagree on the offspring's labor supply decision. I show that whenever offspring is too lazy from the parent's perspective and there are income effects on labor supply, optimal policy...