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Relative Consumption Concerns and the Optimal Tax Mix

Eckerstorfer, Paul - 2011

This articles studies the optimal tax mix (taxes on income and commodities) under asymmetric information in a two-type model, when individuals make relative consumption comparisons. The model includes both positional and nonpositional goods, taking into account the fact that relative concerns...

Persistent link: https://www.econbiz.de/10010294915

Optimal taxation of wealth transfers when bequests are motivated by joy of giving

Brunner, Johann K.; Pech, Susanne - 2011

Inherited wealth creates a second distinguishing characteristic of individuals, in addition to earning abilities. We incorporate this fact into a model of optimal labor income taxation, with bequests motivated by joy of giving. We find that taxes on bequests or on inheritances allow further...

Persistent link: https://www.econbiz.de/10010294919

Optimal Taxes on Wealth and Consumption in the Presence of Tax Evasion

Brunner, Johann K.; Eckerstorfer, Paul; Pech, Susanne - 2010

This article incorporates tax evasion into an optimum taxation framework with individuals differing in earning abilities and initial wealth. We find that despite the possibility of its evasion a tax on initial wealth should supplement the optimal nonlinear income tax, given a positive...

Persistent link: https://www.econbiz.de/10010294923

The bequest tax as long-term care insurance

Brunner, Johann K. - 2012

I study a model of a representative individual who has a motive for leaving bequests and is at risk of needing long-term care in old age. I assume - as is typical for OECD countries - that the individual is not fully insured against this risk. Moreover, at realization the individual is unable to...

Persistent link: https://www.econbiz.de/10010294930

Optimal redistributive taxation in a multi-externality model

Eckerstorfer, Paul - 2011

This paper extends the previous literature on optimal redistributive taxation in the presence of externalities to a multi-externality setting. While taxes on income and on 'clean' commodities are still unaffected by the externalities, which confirms previous results, I find that the existence of...

Persistent link: https://www.econbiz.de/10010294934

The complexity of economic policy: restricted local optima in tax policy design

Saint-Paul, Gilles - 2007

Economists traditionally tackle normative problems by computing optimal policy, i.e., the one that maximizes a social welfare function. In practice, however, a succession of marginal changes to a limited number of policy instruments are implemented, until no further improvement is feasible. I...

Persistent link: https://www.econbiz.de/10010295212

Hidden Economies and the Socially Optimal Fiscal-Tax to Liquidity-Tax Ratio

Ercolani, Marco G. - 2007

Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical...

Persistent link: https://www.econbiz.de/10010295218

On Policy Relevance of Ramsey Tax Rules

Selim, Sheikh - 2007

The Ramsey approach to optimal taxation and Ramsey tax rules have amassed substance in economic theory. However, they … policy. This paper presents a collection of these views; it discusses how closely or remotely Ramsey rules are followed in … rules into positive policy design, it is possible to implement taxes that have strong correspondence to Ramsey tax formulas …

Persistent link: https://www.econbiz.de/10010295239

Hidden Economies and the Socially Optimal Fiscal-Tax to Liquidity-Tax Ratio

Ercolani, Marco G. - In: Economics: The Open-Access, Open-Assessment E-Journal 1 (2007) 2007-6, pp. 1-32

Persistent link: https://www.econbiz.de/10010295289

The impact of optimal tariffs and taxes on agglomeration

Ross, Matthias - 2002

This paper extends an economic geography model by tariffs to analyze their impact on welfare and sustainability of agglomerations. Policies with and without cooperation are compared, with the goal of maximizing aggregated welfare in the former and regional welfare in the latter case. The main...

Persistent link: https://www.econbiz.de/10010295554