This paper provides a new economic interpretation of the well-known dynamic optimal taxation principle that capital income should not be taxed in the steady state. We show that the result is related to the minimization of distortions at the intratemporal margin. When every factor of production can be taxed at the optimal rate, capital income should not be taxed in the steady state. But when the...

The adoption of IT Infrastructure Library (ITIL) framework is a challenging task for many IT service provider organizations. Many government organizations in Finland have also started to use ITIL and need help in configuring tools and defining processes. The research problem of this study is: What types of challenges exist in the IT service provider’s customer support? The main contribution of ...

This essay introduces a new featured section, to be published in Small Axe annually, that explores the critical vocabulary of field Caribbean studies.

Edgeworth’s taxation paradox states that an excise tax can decrease the market price of a good. This paper presents a new version of the paradox in which a tax reduces price because it attracts entry of additional …rms into the market. The paper also presents two new applications: (i) an emissions tax that leads to an increase in industry emissions (due to entry), and (ii) an interest rate cut ...

This paper deals with optimal income taxation based on a model with households where men and women allocate their time between market work and household production, and where households di¤er depending on which spouse has comparative advantage in market work. The purpose is to analyze the tax policy implications of gender norms represented by a market-work norm for men and household-work norm f...

This paper develops a theoretical model of corporate taxation in the presence of …nancially integrated multinational …rms. Under the assumption that multinational …rms at least partly use internal loans to …nance foreign investment, we …nd that the optimal corporate tax rate is positive from the perspective of a small, open economy. This …nding contrasts the standard result that the optimal sou...

We use the Survey of Consumer Finances to measure the change in federal tax liability that would result should mortgage interest no longer be deductible from taxable income. We argue that the elimination of this housing tax provision would lead households to reshuffle their balance sheet, thereby lowering the amount of interest income taxes collected. We find that the cost of this tax provision...

We use the U.S. Survey of Consumer Finances to measure the change in federal tax liability that would result should mortgage interest no longer be deductible from taxable income. We argue that the elimination of this housing tax provision would lead households to reshuffle their balance sheet, thereby lowering the amount of interest income taxes collected. We find that the cost of this tax prov...