In exploring the impact of tax policy on labor-market performance, the paper first investigates how tax reform impacts labor supply and equilibrium unemployment in representative agent models. The impact of tax policy on labor market performance depends importantly on various other labor-market...

This paper analyzes optimal linear taxes on capital and labor incomes in a life-cyclemodel of human capital investment, financial savings, and labor supply with heteroge-nous individuals. A dual income tax with a positive marginal tax rate on not onlylabor income but also capital income is...

We develop models of optimal linear and non-linear income taxation with endogenous human capital formation to explore optimal education subsidies. Optimal subsidies on education ensure efficiency in human capital accumulation and thus play an important role in alleviating the tax distortions on...

The most cost-effective policies for achieving CO2 abatement (e.g., carbon taxes) fail to get off the ground politically because of unacceptable distributional consequences. This paper explores CO2 abatement policies designed to address distributional concerns. Using an intertemporal numerical...

The most cost-effective policies for achieving CO2 abatement (e.g., carbon taxes) are considered politically unacceptable because of distributional consequences. This paper explores policies designed to address distributional concerns. Using an intertemporal, numerical general equilibrium model...

In einer modernen wissensintensiven Wirtschaft ist Humankapital der Schlüssel zur Sicherung des Arbeitskräfteangebots und des Produktivitätszuwachses. Humankapital wird nicht nur in Schulen, sondern auch in der Familie und in Betrieben gebildet. Daher ist ein Gleichgewicht von Arbeit und...