This paper studies investment decisions by economic agents in cases where the tax rate is decided through voting. It will be shown that, in some cases, only a Pareto-dominated tax policy on the wrong side of the Laffer curve is supported under rational expectations. Thus, the governments may...

Externalities exist when companies perform sales activities (e.g., advertising and sales promotions). However, welfare analysis of policy effectiveness, such as taxation/regulation on sales activities, has not been sufficiently conducted. Existing studies have mainly focused on specifying the...

We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a re- newable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the...

This paper examines the design of a tax policy applied to the consumption of durable goods and labor income. We consider cases wherein the government cannot commit to a tax policy in the second period. If the type of taxpayers is unrevealed, it is optimal to tax the durable goods consumption of...

In this study, we reconsider the optimal non-linear tax problem with the public goods from the perspective of the commitment issue and examine how it affects the condition of the public goods provision. We show that the Samuelson rule should be modified when the government cannot commit and the...

We construct a small open economy model with a renewable resource. Households have an endogenous time preference rate that depends on the level of the renewable resource in the domestic economy. Although households know that the degree of own patience depends on its resource, we assume that...

We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a renewable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the natural...

This paper analyzes an endogenous choice problem with regard to tax instruments in a capital tax competition model. Considering a symmetric and two-region model of tax competition, where each region is allowed to choose either unit or ad valorem tax, we show that selecting unit tax as a policy...

The standard economic model of intertemporal decision making assumes that a single discount rate applies equally to discount (dis)utility from all different sources. However, studies such as psychology and behavioral economics have provided evidence that people might discount (dis)utility from...

We overcome the problems of data availability and investigate the fiscal multipliers in autonomous prefectures in China. We first estimate the long-run elasticity of gross regional production with respect to fiscal expenditure in autonomous prefectures, using autoregressive distributed lag...