We use a firm-CEO assignment framework to model the market for CEO effective labor. In the model’s equilibrium more talented CEOs match with and supply more effort to larger firms. Taxation of CEO incomes affects the equilibrium pricing of CEO effective labor and, hence, spills over and affects firm profits. Absent the ability to tax profits or a direct concern for firm owners, a standard presc...

Electronic Commerce is the execution of business processes using Internet technologies continues to be a significant, pervasive issue for both enterprises and customers. Management of relationships between enterprises and customers has often been referred to as Customer Relationship Management (CRM). This paper considers such challenges, linked to the consumer’s understanding and the usability ...

We analyze non-cooperative commodity taxation in a two-country trade model characterized by monopolistic competition and international firm and capital mobility. In this setting, taxes in one country affect foreign welfare through the relocation of mobile firms and through changes in the rents accruing to capital owners. With consumption-based taxation, these fiscal externalities exactly offset...

Analyzing a homogenous household setting with endogenous fertility and endogenous labor supply, we demonstrate that moving from joint taxation to individual taxation and adapting child benefits so as to keep fertility constant entails a Pareto improvement. The change is associated with an increase in labor supply and consumption and a reduction of the marginal income tax, while the child benefi...

Previous work on the effect of taxes on foreign direct investment (FDI) focused primarily on capital income taxes. We investigate the proposition that other forms of taxation may also deter FDI. We use tax ratios, i.e., average effective tax rates, on consumption, labor and capital income for a panel of 25 OECD countries from 1975-2006. We find that increases in relative tax rates on capital in...

This paper constructs a political equilibrium in which firms and unions bargain over wages and workers and capitalists lobby the government for taxation, labor market regulation and immigration policy. The main findings are the following. It is in the native workers’ interests to ban firms’ direct recruitment from abroad. Otherwise, the ruling elite captures the surplus of the labor unions by t...

This paper studies the optimal direct/indirect tax mix problem when individuals differ in several unobservable characteristics (productivity and endowments). It presents general expressions for the optimal commodity tax rates and proves that contrary to Atkinson and Stiglitz’s (1976) result, differential commodity taxation remains a useful instrument of tax policy even if preferences are separa...

This paper investigates how multinational firms choose their capital structure in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, like expropriation, corruption and confiscatory taxation, and In our theoretical analysis we find that as political risk increases t...

Tax software has direct influence on the work efficiency and service quality of tax department. How to evaluate objectively and make the correct choice are problems that must be solved in the construction of tax informationization. The comprehensive evaluation system of tax software is firstly designed by its performance factor, developer factor and cost factor according to the industry charact...

This paper analyses the determinants of compliance costs of the system of direct taxation known as Pay as you Earn (PAYE) in the UK. This is administered by firms who deduct the tax from their employees and, after a lag, pay it to the Government. The analysis shows that there are important economies of scale. In addition compliance costs are directly proportional to (i) ‘disturbance variables’ ...