This paper explores the use of workfare as part of a tax mix when labor supply responses are along the extensive margin. In an economy where the government has a priori chosen any tax-and-bene?t schedule, we show that, despite their common goal of providing additional incentives for individuals...

Tax competition between two governments who choose nonlinear income tax schedules to maximize the average utility of their residents when skills are unobservable and labor is perfectly mobile is examined. We show that there are no equilibria in which there is a skill type that pays positive...

This article explores the use of workfare as part of an optimal tax mix when labor supply responses are along the extensive margin. Particular attention is paid to the interaction between workfare and an earned income tax credit, two policies that are designed to provide additional incentives...

This article explores the use of workfare as part of an optimal tax mix when labor supply responses are along the extensive margin. Particular attention is paid to the interaction between workfare and an earned income tax credit, two policies that are designed to provide additional incentives...

Tax competition between two governments who choose nonlinear income tax schedules to maximize the average utility of its residents when skills are unobservable and labor is perfectly mobile is examined. We show that there are no Nash equilibria in which there is a skill type that pays positive...

Comparative static properties of the solution to an optimal nonlinear income tax problem are provided for a model in which the government both designs an income tax schedule for redistributive purposes and provides a public good optimally. There are two types of individuals, distinguished by...

The real value of grants to New Brunswick municipal councils from the provincial government fell dramatically from 1983 to 2003. At the same time, municipal property tax rates increased, especially among municipalities with comparatively low tax rates in 1983. This study uses an econometric...

This paper analyzes the possibility of using workfare as a supplement to an optimal nonlinear income tax scheme. Some general properties of the optimal tax-required work schedule are derived. For the two-class economy, explicit conditions for the inclusion of workfare in an optimal tax mix are...