We consider the implications of ethical behaviour on the effect of a redistributive tax-transfer system. In choosing their labour supplies, individuals take into account whether their tax liabilities correspond to what they view as ethically acceptable. If tax liabilities are viewed as ethically...

The paper studies credible information transmission by governments. A group of heterogenous individuals have to make private investment and labour supply decisions while relying on the government for information about investment returns. The government consists of an elected citizen who chooses...

In a 3-factor GE-model with a continuum of ability, the employed choose optimal labour supply, and equilibrium unemployment is determined by benefits funded by wage-and energy-taxes. Aggregate labour and the net wage may increase or decrease with taxation (and unemployment), and conditions for a...

The aim of this chapter is to analyze the role played by the Personal Wealth Tax in the process of Spanish tax reform started in 1977. Besides the Personal Net Wealth Tax we also study the reform process of the Inheritance and Gift Taxes. These taxes have generally been justified on equity...