Optimal Emission Tax with Endogenous Location Choice of Duopolistic Firms

Heterogeneous Preferences and Location Choice with Multi-product Firms

This paper investigates whether the principle of minimum differentiation extends to the location choices of multi-product firms of different sizes supplying differentiated goods to consumers with heterogeneous tastes. Our analysis explicitly allows for the possibility that the resulting location equilibria will be asymmetric, and we compare the multiproduct equilibria with the location configur...

Tax Competition with and without Tax Discrimination against Domestic Firms

Location Choice by Households and Polluting Firms: An Evolutionary Approach

This paper examines several policy regimes to deal with the problem that households suffer from environmental damage by firms in the same region. Taxation gives firms and households an incentive to stay away from each other. Laissez faire (compensation) only gives households (firms) an incentive to stay away from firms (households). We employ an evolutionary framework to analyze migration movem...

Endogenous Credit Constraints, Human Capital Investment and Optimal Tax Policy

This paper employs a two-period life-cycle model to derive the optimal tax policy when educational investments are subject to credit constraints. Credit constraints arise from the limited commitment of debitors to repay loans and are endogenously determined by private banks under the non-default condition that individuals cannot be better off by defaulting. We show that the optimal redistributi...

Tax Evasion, Endogenous Spending and the Design of Optimal Tax Codes

In this paper I show that, in economies characterized by tax evasion and endogeneity of government spending, the qualitative characterization of the optimal factor income taxes depends on both these factors. In particular, the well known Chamley Judd result that, in the long run, tax rates on capital income should be zero is, in many cases, overturned. It is shown that the nature of tax evasion...