a r t i c l e i n f o This paper considers the implications of environmental tax reform and public spending policy for growth and welfare. Using a two-sector endogenous growth model where the interactions between health, education, and the environment are taken into account, we show that revenue-positive tax reforms combined with a change in the public spending structure may improve long-run gr...

Mircrosimulation (MS) and Computable General Equilibrium models (CGE) have both been widely used in policy analysis. Their combination allows the utilisation of the advantages of both types. The aim of this paper is to describe the state-of-the-art in simulation analysis and to illustrate the benefits and problems of linking micro and macro models by analysing flat tax reform proposals for Germ...

This paper examines the macroeconomic effects of environmental tax reform in a growing economy. A model of endogenous growth based on human capital accumulation is used to simulate numerically the growth effects of different environmental tax reforms and calculate their impact on welfare in the short and the long-term. Our results suggest that the magnitude of these effects depends on the type ...

Outsourcing of Unionized Firms and the Impact of Labor Market Policy Reforms This paper shows that outsourcing of parts of workforce in unionized firms leads to wage moderation both in the case of strategic and flexible outsourcing and as long as the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the direct substitution effect so...

We develop a new approach for the identification of Pareto‐improving tax reforms. This yields necessary and sufficient conditions existence reform directions. A main insight is that “Two brackets are enough”: When system cannot be improved by altering rates in one or two income brackets, then there no continuous direction Pareto‐improving. also show how to check whether given use these tools st...

This paper presents a new approach for exploring the relation between the implementation of economic reforms and wage differentials. It is applied to a new high quality database that includes 18 Latin American countries. The results indicate that reforms overall have had a short-run disequalizing effect of expanding wage differentials, although this effect tends to fade away over time. This dis...