Wealth inequality is currently rising in rich countries. Expectations that ever more intelligent machines might replace people’s jobs amplify the concerns about an increasingly unequal wealth distribution. We examine how capital tax-financed public investment affects the distribution of wealth when the substitutability between capital and labor changes. We consider a setting with a labor-augmen...

This paper formulates a two-country economic geography model of trade and the environment, in which “entrepreneurs” who own capital are internationally mobile under monopolistic competition. When the environmental policy is predetermined, the model follows the traditional economic geography prediction where industries agglomerate in one country above certain level of trade openness. Moreover, w...

The excess burden of taxation is the efficiency cost, or deadweight loss, associated with taxation. Excess burden is commonly measured by the area of the associated Harberger triangle, though accurate measurement requires the use of compensated demand and supply schedules. The generation of empirical excess burden studies that followed Arnold Harberger’s pioneering work in the 1960s measured th...

This paper uses a two-region, two-period overlapping generations model with international labor mobility to examine the efficacy of using tax policy to internalize the externalities created by international labor migration. While a brain drain tax has a substantial limiting effect on labor migration and a small negative effect on per worker growth, it is found to be a viable solution to the neg...

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in recent decades, the concept of cultural capital has created a lot of scientific studies over the world in the sociology of education. these studies mainly based on the two models: bourdieu's cultural reproduction and dimaggio's cultural mobility. these have achieved different results. this study aimed at evaluating the theoretical models in an empirical condition. middle and high school stud...

The paper studies the dynamic macroeconomic and welfare effects of tax policy in the context of an overlapping-generations model of the Yaari-Blanchard type for a closed economy. The model is extended to allow for endogenous labor supply and three tax instruments—namely, a capital tax, labor income tax, and consumption tax. It is shown that labor taxes increase welfare of old generations wherea...

COPING WITH AND CASHING IN ON INTERNATIONAL CAPITAL VOLATILITY Graham Bird and Ramkishen S. Rajan The political economy of currency taxation suggests that the idea will receive more support if it can be shown to make a significant contribution to offsetting the perceived inefficiencies of private international capital markets. This paper explores what can be expected from a currency tax in this...

Countries around the world continue to tax corporate income at significant rates despite downward pressures from international competition. Average statutory corporate income tax rates fell from 46% in 1982 to 33% in 1999, though tax bases simultaneously broadened, as a result of which average corporate tax collections actually rose from 2.1% of GDP in 1982 to 2.4% of GDP in 1999. Two pieces of...