Technical abstract The paper uses an applied general equilibrium model, calibrated to the situation in Belgium in 1990, to evaluate the welfare effects of small policy changes in the presence of transport externalities. The model incorporates three types of externalities: congestion, which has a feedback effect on the behaviour of the economic agents, air pollution and accidents. The model is u...

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 ...

a r t i c l e i n f o JEL classification: H25 E22 D92 Keywords: Corporate taxation Capital accumulation User cost of capital We present new empirical evidence that sector-level capital–output ratios are strongly influenced by corporate tax incentives, as summarised by the tax component of a standard user cost of capital measure. We use sectoral panel data for the USA, Japan, Australia and eleve...

This paper presents a brief overview of the extant fiscal situation in South Asian countries. In particular, I emphasize low tax/GDP ratios and inelastic expenditure/GDP ratios which then lead to structurally entrenched fiscal deficits. The paper also reports on the sustainability of fiscal and current account deficits in the South Asian countries. Finally, the paper reports on some important i...

Health care system reform covers a disparate and controversial array of issues, a characteristic apparent in the related literature. The literature on proposed system reforms appears to be strongly driven by the actual public policy environment in Washington. Many articles discussing tax credits and reform proposals constructed using tax credits were published during the time when the Bush Admi...

kazakhstan was the last soviet republic to declare independence. but after the soviet collapse, the country seeks to rebuild its national identity and make economic reforms. changing political and economic structures in these countries due to its high dependence on moscow was not easy. in the early years of independence due to the asian financial crisis the country was faced with severe economi...

This paper studies the impact of income taxes on intensive and extensive labor supply decisions for older workers. The literature provides little evidence about the responsiveness of the older population to tax incentives, though the tax code is a potentially important mechanism for affecting retirement behavior. We estimate the intensive and extensive margins jointly with a new approach accoun...

Tax credits are being touted as possible mechanisms for expanding health insurance coverage in the United States. Analysts,1 members of Congress, and the Bush administration have all developed tax credit proposals in the past few years. However, although tax credit approaches are clearly appealing in certain respects, they are probably not the most effective tools for expanding health insurance...

Using a two-agent model comprised of capitalists and workers, this paper examines the importance of imperfect competition in product and labour markets in determining the welfare effects of tax reform. The reform considered consists of eliminating the capital tax alongside a concurrent rise in the labour tax. In contrast to the perfectly competitive model, models with product or labour market f...

In the year 2000, the German government passed the most ambitious tax reform in post-war German history aiming at a significant tax relief for households. One central aim of this tax reform was to improve work incentives and, thereby, foster employment. In this paper, I estimate an intertemporal discrete choice model of female labor supply that allows to analyze the behavioral effects of the ta...