Although developing countries face high levels of income inequality, they rely more on consumption taxes, which tend to be linear and are less effective for redistribution than a non-linear income tax. One explanation for this pattern is that the consumption taxes are generally more enforceable in these economies. This paper studies the optimal combination of a linear consumption tax, with a no...

We analyze the impact of tax progression on optimal investment policy and its value by first demonstrating that optimal investment policy maximizes the value of the firm and the rate at which it is growing as a function of operating capital stock. Then we show that three possible optimal regimes arise depending on the nature of tax policy. If the exogenously given progression threshold lies bet...

This paper develops a two-sector model for a renewable natural resource based economy. Pareto efficient results show the optimal harvesting rate that allows for sustained long-run optimal growth, which is upper-bounded by the biological rate of reproduction. Regulation prevents from resource over-exploitation and exhaustion which arise under open access. The Ramsey policy allowing the competiti...

the corporate income tax rate plays a worthwhile role in developing fiscal and tax policies for companies, lawmakers and analysts. so, one of the most important issues in tax field, is to determine effective tax rates. the study and scientific calculations of the effective tax rates provide an enhanced tax justice and a careful study of tax pressure on taxpayers would be possible. the objective...

The paper considers the possibility of setting differentiated corporate profit rates on foreign direct investment in various industries Denmark order to increase country's economic growth. development one authors regarding determination equilibrium prices retail trade was taken as main method. According this method, were raised for those goods that sold better. On contrary, low-demand decreased...

Optimal international taxation and its implications for convergence in long run income growth rates are analyzed in the context of an endogenously growing world economy with perfect capital mobility. Under tax competition (i) the residence principle will maximize national welfare; (ii) the optimal long run tax rate on capital incomes from various sources will be zero in all countries; and (iii)...