Typically, cost–benefit analysis (CBA) has suggested ‘optimal’ carbon tax regimes that result in a global temperature rise of around 3 °C, or even eventually (post-2100) 4 °C, above preindustrial levels. However, risk analysis approaches indicate that these levels of temperature rise result in climate change impacts that pose a high or very high level of risk to society and ecosystems1 (Fig. 1)...

One of the basic monetary policy issues facing the monopolist supplier of currency is what price to charge for its use. The price paid for the use of currency, by households or firms, is the foregone interest on less liquid, but riskless, assets such as short-term government bonds. Thus, the question of what price to charge for the use of currency is identified with the question of what is the ...

This paper presents a quantitative and computational method to determine the optimal tax rate among generating units. To strike a balance between the reduction of carbon emission and the profit of energy sectors, the proposed bilevel optimization model can be regarded as a Stackelberg game between the government agency and the generation companies. The upper-level, which represents the governme...

This note characterizes the optimal base for commodity taxation in the presence of administrative fixed costs varying across goods. For low tax rates, the optimal base only comprises commodities whose discouragement index is greater than the ratio of their administrative costs to the tax they yield. An illustration with UK data shows that a category of goods should be taxed only if the revenue ...

in this paper, we develop a ramsey-type endogenous growth model in which government spending on property rights protection is a major determinant of economic growth. this model includes equations for welfare, private and public sectors production. we introduce the legal efficiency into private production function, and x-inefficiency parameter into public production function. also, we consider t...

This paper develops an endogenous growth model with dualism in human capital accumulation of two types of individuals. The government imposes a proportional redistributive tax on the resources of the rich individual to finance the educational subsidy given to the poor individuals. We find out the properties of optimal tax cum educational subsidy policy using Stackelberg differential game framew...

This paper employs a two-period life-cycle model to derive the optimal tax policy when educational investments are subject to credit constraints. Credit constraints arise from the limited commitment of debitors to repay loans and are endogenously determined by private banks under the non-default condition that individuals cannot be better off by defaulting. We show that the optimal redistributi...

We analyze the influence of tax progression on optimal investment policy and its value. We show that three possible optimal regimes arise, depending on the nature of the tax policy. If the exogenously given progression threshold lies between the optimal capital stocks in the case of higher and lower marginal profit taxes, then the optimal investment policy is independent of profit tax rates. Bu...