This paper analyses tax policy measures within a two sector endogenously growing economy with elastic labour supply. Pollution is modelled as a side product of physical capital stock used as a primary production factor in the final good sector. The framework allows to analyse consequences of...

Intro -- Contents -- Series Foreword -- Acknowledgments -- Part I Introduction and Motivation -- 1 The Need for Tax-System Analysis -- 2 Standard Optimal Tax Models -- Part II Building Blocks of Tax Systems -- 3 Multiple Behavioral Margins -- 4 Multiple Sources of Costs -- 5 Tax Base Elasticity...