Many political issues like abortion, gay marriage or assisted suicide are strongly contested because individuals have preferences not only over their own choice but also about other individuals' actions. How should society decide these issues? This paper compares three regimes (centralization,...

The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With flexible labor markets, a fall in foreign market entry cost tends to generate more income inequality. By contrast, when workers cannot easily switch industries and wages are...

Some governments have recently called for international accords restricting the use of preferential taxes targeted to attract mobile tax bases from abroad. Are such agreements likely to discourage tax competition or conversely cause it to spread? We study a general model of competition for...

The process of globalization has an important impact on national tax policies. Most of the literature on taxation of capital in open economies does not focus directly on the political decision making process and assumes that the desired tax policy is responding to objective underlying tradeoffs....

This paper analyzes the relationship between brain drain, human capital accumulation and individual net incomes in the presence of a redistributional tax policy, credit market constraints, administrative costs of tax collection, and lack of government commitment. We characterize how decreasing...

Im Zuge der Globalisierung, die sich beispielsweise im gemeinsamen Arbeitsmarkt der EU zeigt, werden die Mobilitätsbarrieren für Humankapital substantiell abgebaut. Die steigende Mobilität hat ambivalente Folgen für das Bildungsniveau der Arbeitskräfte in den einzelnen Ländern. Einerseits...

This paper uses a game-theoretic approach to analyze the taxation of interest income in Europe in the presence of tax evasion. The model allows the authors to assess the success of various reform proposals. They argue that the tax treatment of nonresidents' interest income plays a crucial role....

Um die öffentliche Verschuldung in Deutschland tatsächlich zurückzuführen, ist eine grundsätzliche Neuordnung der Bund-Länder-Finanzbeziehungen nötig. Nach Meinung von Jörg-Uwe Hahn, FDP Hessen und Mitglied der Föderalismuskommission II, bedarf es, neben eines möglichst strikten...

This paper provides a positive analysis of public provision of excludable public goods financed by uniform taxes or fees. Individuals differing in preferences decide, using majority rule, the provision level and financing instrument. The decisive voter has median preferences in a tax regime, but...