Tax Policy, Location Choices, and Market Structure

Tax policy and labor market performance∗

In exploring the impact of tax policy on labor-market performance, the paper first investigates how tax reform impacts labor supply and equilibrium unemployment in representative agent models. The impact of tax policy on labor market performance depends importantly on various other labor-market institutions, such as minimum wage laws, wage bargaining, and unemployment benefits. In non-competiti...

Faster Payments: Market Structure and Policy Considerations

The Personal Income Tax Structure: Theory and Policy∗

There is now a large and complex literature on optimal income taxation, within the context of second-best welfare economics. This paper considers the potential role of this analysis in the practical design of direct tax and transfer structures. It is stressed that few results are robust, even in simple models, in view of the important role played by alternative social welfare functions, the nat...

Taxing Choices: International Competition, Domestic Institutions, and the Transformation of Corporate Tax Policy

POLICY CORNER Distributional Effects of Macroeconomic Policy Choices in Emerging Market Economies

Distributional consequences typically receive limited attention in economic models that analyze the effects of monetary and financial sector policies. These consequences deserve more attention as financial markets are incomplete, imperfect, and economic agents’ access to them is often limited. This limits households’ ability to insure against household-specific (or sector-specific) shocks and m...