Using data for Italy, I show that cash thresholds forbid the use of big transactions are effective tools to reduce income and circulation. Less income, in turn, hinders tax evasion. present an estimate increase revenue implied by empirically estimated reduction determined thresholds.

The interplay of a differentiated indirect tax structure and the variation in expenditure patterns across households, leads to a possibly unequal distribution of indirect tax liabilities across the population. This paper uses the ninth round of the RLMS survey to assess the distributional consequences of the two major components of the indirect tax system: VAT and excise taxes. The global indir...

Child Care Assistance: Are Subsidies or Tax Credits Better? We evaluate price subsidies and tax credits for child care. We focus on partnered women’s labor supply, household income and welfare, demand for formal and informal child care and government expenditure. Using Australian data, we estimate a joint, discrete structural model of labor supply and child care demand. We introduce two methodo...

The distributional impact of the public sector’s budget is a topic of enduring interest for economists and policymakers. The more recent literature on developing countries has focused almost exclusively on the expenditure side of the budget, as discussed in Chapter 2 But the few available studies on tax incidence in developing countries show that some tax policies have redistributive impacts – ...

Is universal social assistance unaffordable? Targeting policy has been praised as a magic solution to select the ‘deserving poor’ and efficiently use scarce resources in Global South. The article tests unaffordability hypothesis using five counterfactual analyses based on expenditure redirection (military expenditure, energy subsidies, potential illegal/odious external debt servicing) increasin...

A macro model is developed incorporating the productive e®ects of public expenditure, but also allowing for congestion. The Pigouvian tax rate to correct for the distortion caused by congestion is found and the optimal level of public expenditure is characterized. JEL Classi ̄cation Numbers: E62, H54 Corresponding author: John Bennett, Department of Economics and Finance, Brunel university, Uxbr...

This paper introduces a discrete-time intertemporal investment model in which the flow of profits affects the risk premium on the cost of finance, and, as a consequence, the rate of discount of future profits. While public investments, according to a consolidated literature, constitute the main bulk of innovation policies, this model is used to comment and interpret the potential use of another...