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Inequality and Optimal Redistributive Tax and Transfer Policies

Zee, Howell H. - 1999

This paper explores the revenue-raising aspect of progressive taxation and derives, on the basis of a simple model, the optimal degree of tax progressivity where the tax revenue is used exclusively to finance (perfectly) targeted transfers to the poor. The paper shows that not only would it be...

Persistent link: https://www.econbiz.de/10014400295

Spend Now, Pay Later? : Tax Smoothing and Fiscal Sustainability in South Asia

International Monetary Fund - 1999

This paper tests a version of Barro’s tax-smoothing model, which assumes intertemporal optimization by a government seeking to minimize the distortionary costs of taxation, using Pakistan and Sri Lankan data for 1956-95 and 1964-97, respectively. The empirical results indicate that...

Persistent link: https://www.econbiz.de/10014400655

Robust optimal macroprudential policy

Montamat, Giselle; Roch, Francisco - 2021

We consider how fear of model misspecification on the part of the planner and/or the households affects welfare gains from optimal macroprudential taxes in an economy with occasionally binding collateral constraints as in Bianchi (2011). On the one hand, there exist welfare gains from...

Persistent link: https://www.econbiz.de/10012518751

Public debt sustainability under uncertainty : an invariant set approach

Rozenov, Rossen - 2017

The paper offers an approach to assessing the sustainability of public debt taking into account the effect of fiscal policy on output, as well as uncertainty in the model parameters and system dynamics. Uncertainty is specified in general terms, and the analysis is based on the notion of...

Persistent link: https://www.econbiz.de/10011716734

Bank Risk Within and Across Equilibria

Agur, Itai - 2014

systemic risk, but limiting the correlation between bank portfolios does not …

Persistent link: https://www.econbiz.de/10014411354

The Use of Encompassing Tests for Forecast Combinations

Kisinbay, Turgut - 2007

The paper proposes an algorithm that uses forecast encompassing tests for combining forecasts. The algorithm excludes a forecast from the combination if it is encompassed by another forecast. To assess the usefulness of this approach, an extensive empirical analysis is undertaken using a U.S....

Persistent link: https://www.econbiz.de/10014401070

The Optimal Mix of Inflationary Finance and Commodity Taxation with Collection Lags

Dixit, Avinash K. - 1990

When there are collection lags in the tax system, inflation reduces the real revenues. This is often offered as an argument for less reliance on the inflation tax. But the optimal rates of other taxes should also be reconsidered in the light of collection lags. When this is done, the focus...

Persistent link: https://www.econbiz.de/10014395819

Risk-Taking and Optimal Taxation with Nontradable Human Capital

Hu, Zuliu - 1992

What are the effects of taxation on individual/entrepreneurs’ risk-taking behavior? This paper re-examines this old … in labor income, then the effect depends on the nature of interaction between wage risk and investment income risk. A … labor income tax may actually raise demand for the risky capital asset if human capital risk and physical capital risk are …

Persistent link: https://www.econbiz.de/10014395838

The Costs of Taxation and the Marginal Cost of Funds

Slemrod, Joel - 1995

It is argued that taxation causes three kinds of deadweight losses and two types of direct costs. The deadweight losses arise from substitution, evasion, and avoidance activities while the direct costs are administrative and compliance costs. Some of these social costs tend to be discontinuous...

Persistent link: https://www.econbiz.de/10014396048

Optimal Taxation Policies in the EMS : A Two-Country Model of Public Finance

International Monetary Fund - 1989

This paper analyzes, in a public finance context, how the optimal use of the inflation and the consumption tax is affected by incorporating into the model constraints on policy decisions that are likely to develop in the context of the EMS by 1992. Two main questions are addressed: first, how...

Persistent link: https://www.econbiz.de/10014396346