In a model in which agents differ in wages and preferences over labor time-consumption bundles, we study labor income tax schemes that alleviate poverty. To avoid conflict with individual well-being, we require redistribution to take place between agents on both sides of the poverty line...

Innovation in the European Union remains weak according to a number of key "input" indicators, especially R&D investment by the business sector, and there are relatively few signs of progress. From a firm-level perspective, Europe's innovation gap relative to the US results from an inappropriate...