In this paper we analyze the convergence properties of some standard approaches to initialize the Parameterized Expectations Algorithm. We carry out a Monte Carlo experiment to compare their performance in computational terms. We do so within the framework of the standard neoclassical growth...

Public spending policy is currently being redefined in most of the advanced economies, dramatically affecting public investment. This paper studies the sensitivity of the provision of public inputs to changes in the technology, taxation and consumer preferences. We consider a simple model in...

We estimate the probability of public sector wage leadership -- defined as Granger causality from public to private sector wages -- in a pool of 15 Organization for Economic Cooperation and Development (OECD) countries as a function of countries' institutional features, and notably wage-setting...

Ten new countries joined the EU in 2004, and some of them will soon also join the euro. Since their incorporation to the single currency is subject to their fulfilment of the Maastricht criteria that current members already fulfilled in 1998, this paper describes and compares these fiscal...

This paper explores the effect of personal income taxes on redistribution when labour supply reactions are taken into consideration. The results indicate that the classical non-behavioural results on redistribution are not necessarily satisfied in a more general behavioural framework. In this...

This article elaborates and evaluates a model for the decentralization of a personal income tax that is consistent with the optimal redistribution model. In this study’s model, the regions have individualistic, symmetrical, additively separable, and inequality-averse social welfare...

This article presents a new type of welfare-improving tax reform model aimed at simultaneously achieving simplification and decentralization of the personal income tax. This model is based on the results of Pfähler and Dardanoni and Lambert and comprises two elements. The first one is the...