A windfall of foreign aid or natural resource revenue faces government with choices of how to manage public borrowing, public asset accumulation, and the distribution of funds to households (across time and household types), particularly when the windfall is both anticipated and temporary. These...

The plan of our paper is as follows. Section 2 presents a methodology which decomposes the growth rate for OECD countries for the period 1967 to 1985 into movements along and movements towards the frontier. Section 3 takes the inter-temporal change in our index of X- inefficiency developed in...

Optimal tax and monetary policies in a stochastic monetary growth model are investigated. Our findings are of three general types. First, both capital income taxes and monetary growth are shown to influence the economy through effective risk adjusted measures, expressed as a linear function of...

Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a plausible parameterization using data on height and wages implies a substantial height tax: a tall...

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened, redistribution has risen with income inequality, and...

The author has been concerned about the capacities of the Canadian economy to restore itself after an adverse economic shock. There is less trust in the institutions of government. The social cohesion that helped to build the sharing economy through the 1960s and early 1970s has been seriously...

It is well known that estimation of the labour supply function is complicated by the non-linearity of the individual's s budget constraint. Non-linearity may be caused by a number of factors such as the structure of the tax/benefit scheme or overtime rates. Non-linearities also cause problems in...

Consumers' increased willingness to pay a price premium for greener products stimulates firms to compete in environmental regulations. This paper uses a model of vertical product differentiation to study how an emission tax affects environmental quality competition, aggregate emissions, and...