The paper studies the implications of increased capital market integration and the associated increased tax competition for world welfare. We consider a population with heterogenous endownments of capital in a model of redistributive politics. We show that if countries have the same average...

This paper investigates the employment effects of changes in the structure of taxation and in the tax progression. The contribution is to add endogenous determination of working hours into a union wage setting model. Thus employment effects of any changes in taxation are derived as a labour...

Economists traditionally tackle normative problems by computing optimal policy, ie the one that maximizes a social welfare function. In practice, however, a succession of marginal changes to a limited number of policy instruments are implemented, until no further improvement is feasible. I call...

A general equilibrium framework is developed for analyzing the role of immobile factors of production which produce inputs for other sectors.

This paper uses a union bargaining framework, where the wage rate is negotiated between the representatives of employees and employers and firms unilaterally determine employment, to discuss the relationship between labour taxation and employment.

This paper analyzes the idea that political opposition to a tax increases with two factors: 1) the amount of tax that would be owed if consumers did not reduce their consumption of the taxed good, and 2) the consumer surplus consumers would enjoy in the absence of the tax.

The conventional conclusion is that, ceteris paribus, a revenue-neutral VAT would have no impact on the aggregate price level, unless it elicits a supply response due to a lower degree of distortions. This paper shows that even if we ignore supply response, a revenue-neutral VAT can lead to...

The conventional conclusion is that, ceteris paribus, a revenue-neutral VAT would have no impact on the aggregate price level, unless it elicits a supply response due to a lower degree of distortions. This paper shows that even if we ignore supply response, a revenue-neutral VAT can lead to...