We study the implications of an increase in price necessities, which disproportionally hurts poor, for optimal income taxation. When government is utilitarian and disutility from labor supply linear, nominal taxes transfers are unchanged as households more to secure their consumption expenditures. Quantitative analyses with convex reveal that, because positive effects, keeping average tax rates...

The study was conducted to comparatively analyse the effects of direct and indirect taxation revenue on economic growth Nigeria. This necessitated by shortfall from Crude oil sales which has been main earner government latent potentials as most reliable source revenue. designed find out tax category affect in Ex post facto research design involving secondary data extracted Central Bank Nigeria ...

We make three contributions to the theory of contracting under asymmetric information. First , we establish a competitive analog to the revelation principle which we call the implementation principle. This principle provides a complete characterization of all incentive compatible, indirect contracting mechanisms in terms of contract catalogs (or menus), and allows us to conclude that in competi...

This paper aims to provide a perspective on the ideal tax system using insights from optimaltax theory supplemented with empirical evidence. These insights are applied to actual policy questions regarding the progressiveness of the labor income tax, in-work tax credits, the design of the capital income tax, the taxation of housing and pensions, the role of indirect taxes, optimal environmental ...

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 ...

Once we get over the current global economic crisis, most developed nations will need to raise significant revenues to pay for their recent economic stimulus packages as well as for their ongoing social welfare systems. Achim Kemmerling’s book will provide policymakers with some important insights about which taxes to increase and what the consequences are for labor markets. Kemmerling observes...

Taxation has been suggested as a possible preventive strategy to address the serious public health concern of childhood obesity. Understanding the public's viewpoint on the potential role of taxation is vital to inform policy decisions if they are to be acceptable to the wider community. A Citizens' Jury is a deliberative method for engaging the public in decision making and can assist in setti...

The Atkinson-Stiglitz Theorem states that if labor is weakly separable from goods in household utility functions, differential commodity taxation should not be not part of an optimal redistributive tax system. This Theorem, which is arguably the most policy-relevant result to come out of the optimal income tax literature, has come under considerable scrutiny in the literature. We consider how r...

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...

Double taxation treaties are intended to eliminate double taxation, thereby encouraging FDI, and prevent tax evasion, which previous literature argues will have a negative effect on FDI. Using a segmented data set and matching econometrics, I show that double taxation treaties have no effect on FDI from developed to less developed countries and substantiate why: Developed countries unilaterally...