Closer international integration is putting increasing pressure on existing national tax structures. This paper uses a simple two-country model to address a range of consequent policy concerns, focusing particularly on the role of country size. Differences in size exacerbate the inefficiency...

This paper suggests and begins to implement a new approach to the old and troublesome question of who bears the tax burden. The methodology rests on a simple concept of tax payment, enabling one to address issues of public interest while avoiding contentious assumptions on shifting. This...

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This paper derives a series of simple characterisations of optimally coordinated regimes for the taxation of international capital income. The influential 'weighted average' rule of Horst (1980) is shown to presume unattractive restrictions on the set of tax instruments available, precluding any...

We study the efficiency of credit market equilibria when financial intermediaries cannot observe the riskiness or the returns of potential investment projects. With loan financing, there is over-investment in high-return, high-risk projects and under-investment in low-return, low-risk projects...

Using the self-selection approach to tax analysis, this paper derives a modified Samuelson Rule for the provision of public goods when the government deploys an optimal non-linear income tax. This approach gives a straightforward interpretation of the central result in this area, generalizes it...

A major constraint on trade liberalization in many countries is the prospective loss of government revenue. Recent results, however, have established a simple and appealing strategy for overcoming this difficulty, whilst still realizing the efficiency gains from liberalization, in small,...