In a recent contribution, H. Naito (1999) has shown that production efficiency may be violated in the optimum with non … efficiency does not hold in the optimum with (i) non-linear and (ii) linear income taxation provided that second best and first …

economies. Theories of optimal taxation conclude that these taxes are detrimental to production efficiency, when firms operate … production units. The present paper investigates the effects of taxation on production efficiency, accounting for the … effect of this "tax induced organizational change" on production efficiency ultimately depends on the characteristics of the …

We explore optimal health subsidies in a dynastic model with health externalities to productivity that cause low health … spending, productivity, longevity, savings and labor but high fertility. Public or firms’ health subsidies increase health … spending, longevity and productivity and decrease fertility. Labor income taxes reduce the marginal benefit of health spending …

The desirability for production efficiency is re-examined in this study, where agents choose occupation based on … lifetime income net of tuition costs. Efficient revenue raising implies that the government should trade off efficiency in … production for efficiency in intertemporal consumption, as capital income is taxed in optimum. The subsequent wage difference …

approach, we analyze the efficiency of education policy in Ramsey's tradition. Distortive wage taxation is shown to provide an … efficiency reason for subsidizing education in effective terms. Second-best policy is confronted with empirical evidence for OECD …