This Paper analyses the optimal timing of taxes on capital income. We show that the celebrated result that taxes should front-loaded with an initially high tax followed by a discrete jump to the steady state is knife-edge, hinging on capital having a constant depreciation rate. An empirically...

We provide empirical evidence on the effects of tax liability changes in the United States. We make a distinction between "surprise" and "anticipated" tax shocks. Surprise tax cuts give rise to a large boom in the economy. Anticipated tax liability tax cuts are instead associated with a...

In thinking about policy, academic economists alternate between theoretical models in which governments can design finely-tuned optimal interventions and practical considerations which usually assume the government to be incompetent and hostage to special interests. I argue in this paper that...

In this paper we construct a simple model of the effects of immigration on the labour market outcomes of natives. In this model, skilled and unskilled labour are substitutes, immigrants are complementary to the former, and wages are determined by bargaining. We are able to prove that,...

We derive a set of stylized facts on the effects of non-systematic fiscal policy in the four largest countries of the Euro area, and discuss their implications for the fiscal policy coordination debate, for the effectiveness of fiscal shocks in stabilizing the economies, and for the interaction...

A rich array of institutional diversity makes the United States an excellent place to study the relationship between political institutions and public policy outcomes. This Paper has three main aims. First, it reviews existing empirical evidence on the relationship between institutional rules,...

As we approach the 21st Century, Australia needs to thoroughly its future population and immigration policies. The questions addressed in this focus on four related areas in which Australia will need to develop a global perspective and corresponding policies: populayion policies which take into...

Since World War II, direct stock ownership by households has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force. Using long time-series from eight countries, we show that the fraction of household ownership decreases with...

There is some concern that immigration contributes to a larger current account deficit in a net borrowing country like Australia. The reason is believed to be that the immigrants on balance have a lower net saving than those born in the country.

This study analyses reform of migration policy. We organise discussion around two main issues- the need to base policy on consensus and the case for implementing policies using forward planning and stable intakes.