This paper assesses the factors behind Finnish emigration and return migration in the 1990s. Logit-analysis using combined micro data from the labour force survey and emigration statistics in 1990-1999 reveals that, when controlling for other background characteristics, highly educated...

Using data from transition economies, this paper examines linkages between political constraints and economic reforms. Estimation results suggest that progress in reform is positively associated with public support for reforms, which is affected by income inequality and expected individual...

We examine the choice of economic reforms when policymakers have present-biased preferences and can choose to discard information (maintain confidence) to mitigate distortions from excess discounting. The decisions of policymakers and firms are shown to be interdependent. Confident policymakers...

The standard theory of optimal income taxation under uncertainty has been developed under the assumption that individuals maximise expected utility. However, prospect theory has now been established as an alternative model of individual behaviour, with empirical support. This paper explores the...

This paper analyses the optimal tax policy and public provision of private goods when individuals differ in two respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the decentralised optimum, if society's marginal valuation...

Using register-based panel data covering all Finnish firms from 1999 to 2004, we examine how corporations anticipated the 2005 dividend tax increase via changes in their dividend and investment policies. The Finnish capital and corporate income tax reform of 2005 creates a useful opportunity to...

Dual income tax systems can suffer from income that shifts from progressively taxed labour income to capital income, which is taxed at a lower, flat rate. This paper empirically examines the 1993 Finnish dual income tax reform, which radically reduced the marginal tax rates on capital income for...

English Abstract: The paper analyses the benefits of earmarking the environmental tax revenues in a second-best world with asymmetry of information between government and taxpayers. Taxpayers are assumed to have taste differences over consumption of an environmentally harmful activity. The...

The paper studies the trade-off between efficiency and equity objectives within a model of commodity taxation. It derives two formulations for a many-person Ramsey tax rule in the presence of externalities. The first tax rule reveals that the aggregate compensated decrease in the demand for a...

This paper evaluates the impact of an integrated rural development programme on farming techniques and food security in the Gaza area of rural Mozambique. We examine the impact of a group-based approach, in a country with few impact evaluations of technology adoption in farming. Using...