Both bankruptcy regulation and redistributive taxation vary considerably across US states. We model the interactions between these two policies: redistributive taxation targets intratemporal inequality whereas asset exemptions in bankruptcy procedures help agents to smooth consumption across time. We derive sufficient conditions under which more redistributive taxation makes bankruptcy exemptio...

We consider the joint effect of profit and Pigouvian taxation in a model of imperfect competition. We show that, when both profit taxation and Pigouvian taxation/subsidy are used, the former is no longer neutral. The two fiscal tools are substitutes, and for any profit taxation rate there exists a unique Pigouvian tax that entails the first best outcome as an equilibrium. Our analysis therefore...

There is importance and timeliness in the issue of Internet taxation. Internet commerce is growing exponentially. With this growth comes the potential for tremendous tax revenue, as well as criticism for receiving an unfair tax advantage. One of the benefits of the Internet is its lack of national and geographical boundaries. However, this lack of boundaries makes taxation and regulation of the...

Geothermal energy is one of the cleanest sources of energy which is gaining importance as an alternative to hydrocarbons. Geothermal energy reserves in China are enormous and it has a huge potential for exploitation and utilization. However, the development of the geothermal industry in China lags far behind other renewable energy sources because of the lack of fiscal and taxation policy suppor...

Redistributive taxation and education subsidies are common policies intended to foster education attendance of poor children. However, this paper shows that in an intergenerational framework, these policies can raise social mobility only for some investment situations but not in general. I also study the impact of both policies on the aggregate skill ratio and inequality. While redistributive t...

wealth has affected how the very rules of both societies are shaped, and has created disproportionately greater opportunities for those with substantial wealth. This paper considers taxation and philanthropy as possible means for reducing inequality. In analyzing policies on taxation and philanthropy, this paper concludes that despite limitations and unintended consequences, under the current s...

Tax evasion has always been an important topic to tax theory researchers and the department of government. However, existing research results are confined to the unilateral action of taxpayers, neglect the interaction between the tax declaration and taxation inspection. This paper, from an optimal tax administration perspective, builds a general equilibrium model, in which, taxation inspection ...

Two policy instruments for the banking sector are investigated, namely systemic risk taxation and constructive ambiguity about bailout policy. Bailout expectations can induce moral hazard in the form of excessive risk taking by banks. Systemic risk taxation induces banks to prefer uncorrelated investments, leading to lower systemic risk formation. Constructive ambiguity generates uncertainty ab...