Assuming that higher traveling expenses reduce traveling time, this paper considers reliefs for traveling expenses to work when a distorting wage tax is levied. While the decision on traveling expenses would not be distorted if traveling costs were completely deductible, taxation would still not...

This paper proposes the question whether or not traveling expenses to work should be deductible from the income tax base. In order to answer this question, a simple model of (im-) perfect household and worker mobility is employed. The focus of the analysis is on the efficient use of land and the...

Assuming decreasing returns to education and the endogenous supply of qualified and non-qualified labour it is shown to be efficient to supplement a consumption tax with positive incentives for education. If the return from education is isoelastic and if the choice is between (i) subsidizing the...