This paper examines a symmetric Nash equilibria of a two-country model of fiscal competition with a continuum of taxable commodities in each country. The innovation is to impose a uniformity restriction that there can be only two rates of tax on the different commodities, a positive rate and the...

This paper compares the most significant expectational stability criteria that have been used to assess the plausibility of perfect foresight trajectories in forward-looking dynamical systems: determinacy of trajectories, absence of neighbour sunspot trajectories, and convergence of "evolutive"...

<p>In a second best environment, the optimal policy choice sometimes follows the first best rules. This note lays down the information structure and separability assumptions under which this property holds in a variety of setups.

The idea that a drop in social welfare contributions being offset by an increase in VAT could favour employment and competitiveness is a subject of important controversies. This not does suggest that such a kind of measures could not be neutral. In the long run, on an unchanged budgetary basis,...

This paper studies the consequences on employment of a ¯scal reformcalled social VAT which consists to replace a wage tax by VAT. A cali-bration exercise based on 2003 french national accounts suggests that a15 billions euros reduction of wage taxes, when ¯nanced by VAT, couldlead to an...

In a second best environment, the optimal policy choice sometimes follows first best rules. This paper presents a formal general argument which allows to unify much of the literature. It lays down the information structure and separability assumptions under which the results hold in a variety of...