This paper analyzes optimal taxation and risk-sharing arrangements in an economy with two levels of government. Both levels provide public goods and finance their expenditures via labor income taxation, where the tax base is responsive to the private agents' labor supply decisions. The...

This paper analyzes the implications of social identity and self-categorization in the context of optimal redistributive income taxation. A two-type model is supplemented by an assumption that individuals select themselves into social categories, in which norms are formed and education effort...

The purpose of this paper is to design a test of whether the vertical external effects associated with tax base sharing among local and regional governments have become internalized via the intergovernmental transfer system. Such tests are important in the sense that the income tax rates chosen...

This paper analyzes how the distribution of gross income among residents in a locality affects the local provision of public goods. The analysis is based on a two-type model, where the local residents can be either high income earners or low income earners. Local provision is assumed to reflect...

This paper analyzes whether households use house interest deductions to minimize family tax payment. By applying a household model in which tax deductions are associated with a cost, we relate the likelihood of minimizing the tax payment to variables associated with the budget constraint and...

The purpose of this paper is to estimate the intra-family distribution of income and the individual demand for leisure and household production from Swedish cross-sectional household data. As a basis for the analysis, we use a collective model where each individual is characterized by his or her...

We study how the optimal use of labor income tax progression depends on whether the wage bargaining system is decentralized or centralized. Assuming a nonlinear labor income tax and an unrestricted profit tax, we show that a Utilitarian government is able to implement the first best resource...

In Sweden, there are two separate instruments for ranking applicants in the admission to higher education; the GPA from upper secondary school and the Swedish Scholastic Assessment Test (the SweSAT). A problem in the selection is that different groups of students perform differently on the...

The purpose of this study is to find out if the income premium from university entrance differs with respect to prior achievement as measured by previous grades. Using income at the age of 28 to 30, we analyze if high-achievers have larger income premiums from entering university than...

The purpose of the paper is to study the effects of taxation on dividend payments and ex-dividend price changes in Sweden during 1991-1995. Under this period, dividends and capital gains were taxed at a flat rate. Tax changes in Sweden during the 1990s thus provide an opportunity to include...