Showing 1 - 10 of 347
We analyze the impact of micro-founded political institutions on economic growth in an overlapping-generations economy, where individuals differ in preferences over a public good (as well as in age). Labour and capital taxes finance the public good and a public input. The benchmark institution...
Persistent link: https://www.econbiz.de/10005504348
Even relatively poor people oppose high rates of redistribution because of the anticipation that they, or their children, may move up the income ladder. This ‘Prospect of Upward Mobility’ (POUM) hypothesis is commonly advanced to explain why democracies do not engage in large-scale...
Persistent link: https://www.econbiz.de/10005662178
We analyse the impact of micro-founded political institutions on environmental policy and economic growth. We model an overlapping-generations economy, where individuals differ in preferences over the environment (as well as in age). Labour taxation and capital taxation is used to finance a...
Persistent link: https://www.econbiz.de/10005791516
We investigate redistributive taxation in a political economy experiment and determine how different patterns of social mobility affect the choices of redistributional taxes. In the absence of social mobility, voters choose tax rates that are very well in line with the prediction derived in the...
Persistent link: https://www.econbiz.de/10008607502
The paper contradicts the thesis of Mancur Olson presented in `The Rise and Decline of Nations', using empirical evidence from studies on business interest associations and sectoral corporatism. We argue first that, unlike Olson assumes, selfish interest associations are not necessarily...
Persistent link: https://www.econbiz.de/10005789002
adequate mechanisms of regulation and governance. This implies that economic theory requires an enhanced understanding of the …
Persistent link: https://www.econbiz.de/10008784732
We develop a model of human capital formation with endogenous labour supply and heterogeneous agents to explore the optimal level of education subsidies along with the optimal progressive schedule of the labour income tax and optimal capital income taxes. Subsidies on education ensure efficiency...
Persistent link: https://www.econbiz.de/10005504308
We develop a general equilibrium model that jointly considers the influence of capital accumulation constraints and of labour market frictions on the process of transition. We endogenize the economic and budgetary costs of different government policies and show that, early in transition,...
Persistent link: https://www.econbiz.de/10005504399
This paper presents evidence of profit shifting in response to differences in corporate tax rates for a large selection of OECD countries. In our estimates we control for the effects of tax rate changes on real activity. Our baseline estimates suggest that, on average, a unilateral increase in...
Persistent link: https://www.econbiz.de/10005504504
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...
Persistent link: https://www.econbiz.de/10005504617