Taxing capital and labor when both factors are imperfectly mobile internationally

Taxing Mobile Capital with Labor Market Imperfections*

Taxing internationally mobile factors of production has been dismissed as an inefficient means of raising tax revenue. This paper addresses the question of whether it is efficient to tax capital at source when labor markets and the taxation of lumpsum income suffer from imperfections. Four reasons for taxing capital are identified: (i) institutional constraints rendering any taxation of profit ...

Investigating species co-occurrence patterns when species are detected imperfectly

1. Over the last 30 years there has been a great deal of interest in investigating patterns of species co-occurrence across a number of locations, which has led to the development of numerous methods to determine whether there is evidence that a particular pattern may not have occurred by random chance. 2. A key aspect that seems to have been largely overlooked is the possibility that species m...

Taxing Capital is Not a Bad Idea Indeed: The Role of Human Capital and Labor-Market Frictions

In a second-best optimal growth setup with only factor taxes as available instruments, is it optimal to fully replace capital by labor income taxation? The answer is generally positive based on Chamley, Judd, Lucas, and many follow-up studies. In the present paper, we revisit this important tax reform-related issue by developing a human capitalbased endogenous growth framework with frictional l...

Maintaining a Reputation When Strategies Are Imperfectly Observed

Neoclassical Models of Imperfectly Competitive Labor Markets

The scenario of perfect competition, as augmented by human capital theory, yields a large body of testable hypotheses concerning labor market outcomes. These hypotheses, overviewed in the first chapter of this volume, might all be understood as applications of three more fundamental implications of perfectly competitive equilibrium conditions: no unemployment or vacancies, the law of one wage, ...