simulation approach to derive optimal nonlinear marginal tax rates for the pre-crisis and crisis periods. We contribute to the … literature by examining optimal tax rates numerically for a developing country and by investigating how the tax rates should be … increased pre-tax inequality, the tax system should become more redistributive as a response to a crisis. We also demonstrate …

This paper studies the design of tax systems that implement a planner's second-best allocation in a market economy. An … example shows that the widely used Mirrleesian (1976) tax system cannot implement all incentive-compatible allocations … one tax system. However, this tax system is often undesirable since it severely restricts the choice space of agents in …

where lump-sum taxes are infeasible. After deriving the environmental tax rate which exactly internalizes the external … effect, we show how to separate the analysis of second-best optimal environmental taxes from the analysis of the tax …-best Pigovian tax rate on polluting goods and the optimal tax rate in a second-best world …

selling an investment often leads to tax-liable capital gains and capital gains crucially depend on the duration of an … investment we investigate the impact of capital gains taxation on the holding period under three different tax systems. In our … corporate tax integration. We find, e.g., a high retention rate to extend the minimum holding period under a shareholder relief …

basic tax systems are analyzed, a classical corporate tax system with double taxation of profits on corporate and personal … solutions for the investment problem for different categories of tax regimes, even under certainty, cannot be derived. Applying … Carlo Simulation for random rates of return and random income tax rates. In many cases, the degree of tax …

Tax evasion is modeled as a risky activity and integrated into a standard problem of optimal tax design. It is shown … that there is a trade off between reducing tax evasion and reducing tax distortion. Thus it is efficient to supplement a … broad-based wage tax by a tax on specific consumption if the former is evaded and the latter not. The optimal tax structure …

some other criterion than individuals' preferences. Using the self-selection approach to tax problems developed by Stiglitz … (1982) and Stern (1982), the paper provides a characterization of the properties of an optimal redistributive mixed tax …

We study experimentally how taxpayers choose between two tax regimes to fund a public good. The first-best tax regime … imposes a general, distortion-free income tax. However, this tax cannot be enforced. The second-best alternative supplements … the income tax by a specific commodity tax. This tax cannot be evaded but distorts optimal consumption choices, instead …

In a partial equilibrium setting without price uncertainty, the balanced-budget substitution of an ad valorem tax on … output for a specific (unit) tax can enhance welfare in imperfectly competitive markets and is without impact in a …