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...

The effects of an increase in an emission tax rate are analyzed. The initial tax mix of the economy is such that the higher emission rate serves to internalize social costs an simultaneously approaches a second-best tax system (in the absence of environmental distortions). It is shown that this...

We study the aggregate and distributional effects of corporate tax reforms when market power is heterogeneous across sectors and firms. We use a life-cycle model with incomplete markets in which capital and equity do not always move in tandem when corporate tax policy changes. On the one hand,...

This commentary reflects on the recommendations of the Mirrlees Review on tax reform with a special focus on capital income taxation. Regarding the alternatives of moving to a consumption based tax system, the commentary discusses the relative merits of choosing an ACE system (allowance for...