In their seminal paper, Bovenberg and De Mooij (1994) elucidate why an ecological tax reform will not yield a double dividend, i.e. fails to increase the efficiency of the tax system. The present paper slightly modifies the Bovenberg and De Mooij model by introducing money illusion. With this...

This paper asks whether tax cycles can represent the optimal policy in a model without any extrinsic uncertainty. I show, in an economy without capital and where labor is the only choice variable (a Lucas-Stokey economy), that a large class of preferences exists, where cycles are optimal, as...

For many kinds of capital, depreciation rates change systematically with the age of the capital. Consider an example that captures essential aspects of human capital, both regarding its accumulation and its depreciation: a worker obtains knowledge in period 0, then uses this knowledge in...

In this paper, we examine network capital usage and migration patterns in a theoretical model. Networks are modeled as impacting the migration decision in many ways. When young, larger networks reduce the time lost moving from one region to another. In addition networks decrease the time spent...

We investigate the efficiency properties of population mobility when localities compete in an environment with local amenities and local externalities. Our model is dynamic, incorporating land and labor markets in a context where firms and workers form rational expectations. Concern focuses on...

The hypothesis that cooperation between fiscal and monetary authorities to minimize the distortionary costs of financing an exogenous stream of government expenditures implies a long-run relationship between inflation and tax rates is called the revenue-smoothing hypothesis. This paper uses the...

This paper reviews the analytical and empirical evidence on certain issues in commodity tax design that have not received much attention. These include the impact on optimal commodity taxes of allowing the following: (i)non linear Engel curves, (ii)Household composition and child subsidy,...

This paper provides evidence showing that the insensivity of marginal commodity tax reforms to demand specification, observed in recent studies, does not extend to the non marginal case. The size of the tax change has a sharp impact on commodity tax reforms. In constrast to priceeffects, neither...

Some of the most interesting results in the modern theory of fiscal federalism indicate that, contrary to expectations, even if there are interstate externalities, socially optimal policy choices are a non cooperative equilibrium of a game played by sovereign states. These results are shown to...

The evidence in this paper would indicate that despite the push to make Australia an internationally competitive economy, its current tax system is not in touch with those of our trading partners nor in accord with our economic and trading priorities. This will pose a major challenge for...