We quantify the distortionary effects of nexus tax laws on Amazon's distribution network investments between 1999 and 2018. highlight role two features expansion network: densification facilities vertical integration into package sortation. Densification results in a reduction cost shipping orders, but comes at expense higher facility operating costs more expensive areas lower scale economies p...

We find a limited parallel between lump-sum taxes and environmental taxes. Corollary 2, which extends Sandmo’s observation, shows that appropriated corrective revenues have the same non-distortionary effects as lump-sum taxes, the result reducing to the original observation when the appropriated corrective revenues meet the revenue need and achieve first-best efficiency with other taxes set at ...

The net effects of switching from consumption taxation to inflation taxation on resource allocation and welfare crucially depend on production externalities. With elastic labor supply, raising inflation taxation decreases leisure, but increases the levels of real consumption, capital, and output. Moreover, this tax switch has two opposing effects on the level of real money balances: A positive ...

The question of whether or not fiscal policy stimulates growth has dominated theoretical and empirical debate for a long time. One viewpoint believes that government involvement in economic activity is vital for growth, but an opposing view holds that government operations are inherently bureaucratic and inefficient and therefore stifles rather than promotes growth. In the empirical literature,...

I develop a novel link between frictions in international financial markets and fiscal procyclicality.Complementing existing evidence, A decomposition of government expenditure into social spending public good reveals that the cyclical correlation exhibits biggest differences across countries. build small open economy model with income inequality, endogenous policy sovereign default risk to rat...

This paper argues that taxation of retained pro ̄ts is particularly distortionary in economies with poorly developed ̄nancial markets. In such economies, a tax on retained pro ̄ts reduces the investment of ̄nancially constrained ̄rms, investment that has marginal product greater than the after-tax market real interest rate. Contrarily, a tax on distributed pro ̄ts primarily reduces the investment ...

We study the the emergence of multiple equilibria in models with capital and bonds under various monetary and …scal policies. We show that the presence of capital is indeed another independent source of local and global multiplicites, even under active policies that yield local determinacy. We also show how a very similar mechanism generates multiplicities in models with bonds and distortionary...

Often, researchers wish to analyze nonlinear dynamic discrete-time stochastic models. This paper provides a toolkit for solving such models easily, building on log-linearizing the necessary equations characterizing the equilibrium and solving for the recursive equilibrium law of motion with the method of undetermined coeecients. The innovation here is to demonstrate that log-linearizing the non...

It is well known that research and development (R&D) is an important engine for economic growth. Also, initial wealth inequality and subsequent economic growth are well known to be related. This paper links inequality and R&D-driven growth. It shows that in a class of economies where R&D is the main engine for growth, di¤erent wealth groups di¤er in their desire for aggregate innovative e¤orts:...

In recent years, a vast literature has appeared on the relationship between fiscal policy and long-run economic growth. With aim to give an overview of discussion establish point departure for future research, this study used time series techniques rigor empirical model investigate link various components Ethiopia’s growth annual data 35 years. It employed autoregressive distributed lag estimat...