The aim of the article is to quantify and compare the impact of capital and labour tax on the economies of Central and Eastern Europe (CEE). The impulse-response functions presented in the paper show that output reacts differently to changes in the taxation of labour and capital. Although there...

Why do individuals' preferences for redistribution often diverge widely from their material self-interest? Using an original online survey experiment spanning eight countries and 12,000 respondents across Latin America, one of the most unequal regions in the world, we find significant evidence...

This paper compares two important sources of tax revenue statistics for African countries, namely the Africa Tax Administration Forum's African Tax Outlook and the United Nations University World Institute for Development Economics Research Government Revenue Dataset. We consider the background,...

This paper presents a comprehensive framework examining fiscal sustainabil- ity in developing economies. It integrates public capital, labor informality, and global liquidity shocks in a two-sector DSGE model for a small open economy, revealing their intricate interplay and nonlinear impact on...

How will international integration affect welfare policies? This paper considers the possibilities of financing public sector activities (public consumption and social security expenses) by general (wage) taxation in an economy which becomes more integrated in international product markets. Even...

Macroeconomic studies of tax policy in dynamic general equilibrium usually assume that reforms hit the economy unexpectedly and last forever. Here, we explore how previous results change when we allow policy changes to be pre-announced and of finite duration and when these facts are anticipated...

The 2008 financial crisis is the worst economic crisis since the Great Depression of 1929. It has been characterised by a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, leading to deleveraging and credit crunch when the bubble burst....

Can a large-scale deficit spending program speed up recovery after recession? To answer that question we calibrate a standard neoclassical growth model with US data and assume that an exogenous shock has driven aggregate output far below steady-state and that the economy is expected to recover...

This paper addresses two basic issues related to technological innovation and climate stabilisation objectives: i) Can innovation policies be effective in stabilising greenhouse gas concentrations? ii) To what extent can innovation policies complement carbon pricing (taxes or permit trading) and...

This paper focuses on the responses of main macroeconomic indicators to the tax and spending shocks in Finland using a structural VAR approach. The results suggest that GDP increases in response to an increase in government spending whereas it falls in response to an increase in total net taxes....