How do taxes in the financial sector affect economic outcomes? We analyze a simple general equilibrium model with financial intermediation. We formalize a trade-off between tax policies that burden the owners of banks and tax policies that burden households. We also study the implications of the...

We propose a new approach to the normative analysis of public-good provision in an economy that is large so that any one individual is too insignificant to have a noticeable effect on the provision levels of public goods. In such an economy, the standard mechanism design problem of calibrating...

We study the impact of a nancial transactions tax on a market where financial institutions trade with each other. There are two main results: First, if all banks can honor their short-term obligations, a financial transactions tax is entirely neutral. Second, in a model with correlated...

Standard tax incidence analysis deals with households and firms that buy and sell consumption goods, as opposed to financial institutions that buy and sell financial products. This paper develops a framework that allows us to study tax incidence on financial markets, and applies it to a...

We introduce intention-based social preferences into a mechanism design framework with independent private values and quasilinear payoffs. For the case where the designer has no information about the intensity of social preferences, we provide conditions under which mechanisms which have been...

We study political competition in an environment in which voters have private information about their preferences. Our framework covers models of income taxation, public-goods provision or publicly provided private goods. Politicians are vote-share-maximizers. They can propose any policy that is...

Die Steuerplanung internationaler Unternehmen, die durch geschickte Kombination von Regelungen ihre Steuerbelastungen gegen null senken, und die Steuerpolitik einiger Länder stehen in der öffentlichen Kritik. Johanna Hey, Universität zu Köln, verweist darauf, dass es bei der Bekämpfung sog....

We characterize the Pareto-frontier in a simple Mirrleesian model of income taxation. We show how the second-best frontier which incorporates incentive constraints due to private information on productive abilities relates to the first-best frontier which takes only resource constraints into...

This paper studies the impact of a financial transactions tax on a financial market where financial institutions trade with each other. Assets are marked to the market and financial institutions with negative equity are forced out of business. There are two main results: First, if all banks have...

This paper derives a version of the Samuelson rule which takes into account that a distortionary Ramsey-tax system is used to finance public-goods provision. Individuals have private information about their public-goods preferences. Moreover, individuals differ in their productive abilities. The...