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Harnessing windfall revenues : optimal policies for resource-rich developing economies

Ploeg, Frederick van der; Venables, Anthony - 2009

A windfall of natural resource revenue (or foreign aid) faces government with choices of how to manage public debt, investment, and the distribution of funds for consumption, particularly if the windfall is both anticipated and temporary. We show that the permanent income hypothesis prescription...

Persistent link: https://www.econbiz.de/10003813611

Climate inequality : carbon capture for redistribution

Belfiori, Elisa; Macera, Manuel - 2024

capture serves as a redistribution tool when direct lump-sum transfers across regions are unfeasible. …

Persistent link: https://www.econbiz.de/10014632377

Optimal redistribution with labor supply dependent productivity

Gürer, Eren; Weichenrieder, Alfons J. - 2025

This study examines optimal government redistribution in a Mirrleesian framework, accounting for a negative effect of … longer working hours on productivity. A government ignoring this effect perceives labor supply as insufficient and sets lower … marginal income taxes to encourage work. In contrast, a government recognizing the endogenous relationship between productivity …

Persistent link: https://www.econbiz.de/10015397024

The marginal cost of public funds : a brief guide

Bastani, Spencer - 2023

When deciding on the social desirability of public investment, the cost of a project is sometimes adjusted by a factor known as the Marginal Cost of Public Funds (MCPF) which captures the cost of raising public funds through distortionary taxation. However, there is no scholarly consensus on...

Persistent link: https://www.econbiz.de/10014234016

Financing public capital through land rent taxation : a macroeconomic Henry George theorem

Mattauch, Linus; Siegmeier, Jan; Edenhofer, Ottmar; … - 2013

Financing productive public capital through distortionary taxes typically creates a trade-off: the optimal investment is determined as a compromise between efficiency-enhancing public investment and perturbing market efficiency, but is never socially optimal. In contrast, such a trade-off can...

Persistent link: https://www.econbiz.de/10009754533

Public investment when capital is back : distributional effects of heterogeneous saving behavior

Mattauch, Linus; Edenhofer, Ottmar; Klenert, David; … - 2014

We study the impact of heterogeneous saving behavior on the distributional effects of public investment. A capital tax is levied to finance productive public capital in an economy with two types of households: high income households who save dynastically and middle income households who save for...

Persistent link: https://www.econbiz.de/10010260036

Redistribution with unequal life expectancy

Köhne, Sebastian - 2023

optimal income tax policy using theory and calibration. A positive association between life expectancy and income counteracts … the well-known static pattern of declining marginal utility. As a result, the mechanical value of redistribution is … effects of the mechanical value of redistribution dominate, and the optimal marginal tax rates fall by up to 10 percentage …

Persistent link: https://www.econbiz.de/10014382962

Normative analysis with societal constraints

Boadway, Robin W.; Martineau, Nicolas-Guillaume - 2013

This paper examines the question of achieving a societal consensus around redistributive policies. Its extent is measured by the degree of work participation among the different skill classes that populate the economy. This consensus is driven both by the material incentives and heterogeneous...

Persistent link: https://www.econbiz.de/10009765042

When a price is enough : implementation in optimal tax design

Renes, Sander; Zoutman, Floris T. - 2014

This paper studies the design of tax systems that implement a planner's second-best allocation in a market economy. An example shows that the widely used Mirrleesian (1976) tax system cannot implement all incentive-compatible allocations. Hammond's (1979) "principle of taxation" proves that any...

Persistent link: https://www.econbiz.de/10010412846

Income taxes, property values, and migration

Glazer, Amihai; Kanniainen, Vesa; Poutvaara, Panu - 2003

We consider taxation by a Leviathan government and by a utilitarian government in the presence of heterogeneous locations within a country, when migration from one country to another is and is not possible. In a closed economy, a utilitarian government may transfer income from the poor to the...

Persistent link: https://www.econbiz.de/10011511078