If "tax progression is good for employment in popular models of trade union behaviour" (Koskela and Vilmunen, 1996), then a flat-rate premium, as proposed as a means of funding for public health care, is bad. This note shows that replacing existing (proportional) social security contributions by...

White (1996), Poyago-Theotoky (2001) and Myles (2002) prove that in the mixed oligopoly the optimal subsidy, equilibrium output level, all firms' profits and social welfare are identical irrespective of whether the public firm maximizes welfare or profit and moves simultaneously with private...

Firms compete in model of horizontal differentiation a la Hotelling. They use two-part tariffs but the market is such that, in equilibrium, it is not fully covered (firms are then local monopolies). The question we adressed in this paper is to determine what kind of subsidies are the best...

In an example with monopoly final and intermediate goods firms and substitutable primary and intermediate inputs, it is shown that there exist turnover taxes that yield more revenue than any feasible value-added tax. Second, simultaneously higher welfare, revenue and output are possible with the...

This paper investigates the causes of municipalities secession in Brazil. We develop a model where the median voter decides on the creation of new municipalities observing the trade-off between loss of scale on public production and increase in federal transfers to his/her municipality. Voters...

We show that the international distribution of ownership of the incumbent firms within a host region matters for the efficiency of the fiscal competition between the region's constituent countries for a new FDI project. If incumbent firms are owned entirely within the host region, then the new...

This paper uses recently unveiled monthly information from the Hellenic Ministry of Finance on tax audits targeted to large enterprises, high wealth individuals and VAT non-filers and finds evidence that an increase in the number of audits can boost revenue performance. A 1 percent increase in...

This paper investigates the presence of buoyancy effects in VAT revenue. The projected improvement in economic conditions from 2014 onwards could result in cumulative gains in VAT revenue up to 0.70% of GDP in the period from 2014 to 2016. There is evidence that the intensification of VAT...

Traditional literature exploring the relationship between production and tax evasion ignores the impact of other activities on these two decisions. This paper incorporates firms' tax avoidance activities into the model of tax evasion. In contrast to conventional results, we find that profit tax...

The voluntary provision of public goods can be enhanced by subsidies paid to contributors. However, in the case of threshold public goods, subsidies can be wasted if the public good is not ultimately produced. We therefore test the performance of a conditional subsidy paid to each contributor...