It is an article of faith – among politicians as well as scholars – that government policies have the potential to influence the extent and nature of economic activity, particularly when policies impede the normal functioning of business. Examples include regulatory regimes that discourage business formation, legal systems and institutions that make it difficult to execute and enforce commercia...

0377-2217/$ see front matter 2012 Elsevier B.V. A http://dx.doi.org/10.1016/j.ejor.2012.09.047 ⇑ Corresponding author. E-mail addresses: [email protected] (K. Hausk Zhuang). 1 In economics, Cobb–Douglas or CES production special assumptions about the functional relations betw proved to be extremely useful for advancing our processes and economic growth. A company allocates a resource between...

1 Reflections on Some Small, Medium and Large Design Issues with Income Source Rules in International Taxation Mitchell A. Kane It is difficult to find vocal defenders of current instantiations of source rules in international taxation. As a category, source rules would seem to reflect an assertion of tax jurisdiction -namely on a principle of territoriality -which lacks a firm and universally ...

Background: Childhood obesity is a global public health problem as a result of poor eating and activity behaviours. Periodically, taxation has been proposed as a strategy to modify food purchasing behaviour, and once again, there is growing interest in the feasibility of this approach towards obesity prevention. This article examines the outcomes of an expert panel that was convened to obtain c...

T hose who shape state and local fiscal policy have had a sustained interest in the role that taxation plays in the economic development of states, regions, cities, and special districts or zones. At least 75 studies of employment growth, investment growth, or firm location include an analysis of taxes. Interest in the topic is fueled further when firms complain about the business climate in ge...

With ever rising concerns regarding global warming and other dangerous effects of C0 2 , there had been efforts to reduce CO 2 emissions all around the world by adopting more efficient technologies and alternate green or carbon neutral fuels. However, these technologies require large investments and hence to make them economically viable there should be suitable incentives from the government i...

This paper tries to answer the question how taxation of corporate and individual income affects competition among firms for highly-skilled human resources like CEOs. It shows that individual income taxes can perform a substantial impact on the outcome of such a competition if marginal tax rates are different like in an international labor market. Additionally, it presents the surprising result ...

This paper analyzes features of perfect taxation – also known as optimal taxation – when one or more private markets is imperfectly competitive. Governments with perfect information and access to lump-sum taxes can provide corrective subsidies that render outcomes efficient in the presence of imperfect competition. Relaxing either of these two conditions removes the government’s ability to supp...

The United States relies for its government revenues more on the taxation of capital relative to the taxation of labor than countries in continental Europe do. In this paper we ask what can account for this. Our approach is to look at Markov perfect equilibria of a two– country growth model where both governments use labor, capital and corporate taxes to finance exogenously given streams of pub...

Taxpayers shelter income from taxation both through illegal evasion and legal avoidance. This tax sheltering creates a difference between a household’s actual income and what it reports to the tax authorities. While tax sheltering is a central concern for designing a tax system, the private nature of this behavior complicates evaluating the magnitude and determinants of such behavior. In this p...