ISSN 0265–8240 © 2007 The Authors Journal compilation © 2007 Baldy Center for Law and Social Policy Blackwell Publishing Ltd Oxford, UK LAPO aw & Policy 0265-8240 © 2007 The Aut or Journal compilation © 2007 Baldy Center for Law and Social Policy J nuary 2 07 29 1 riginal Article W & POLICY January 2007 Feld Frey TAX COMPLIANCE AS A PSYCHOLOGICAL TAX CONTRACT Tax Compliance as the Result of a P...

Behavioral economics is changing our understanding of how economic policy operates, including tax policy. In this paper, we consider some implications of behavioral economics for tax policy, such as how it changes our understanding of the welfare consequences of taxation, the relative desirability of using the tax system as a platform for policy implementation, and the role of taxes as an eleme...

a r t i c l e i n f o This paper concerns redistribution and public good provision under asymmetric information, which are here ingredients of a policy-problem facing each member state (nation) of an economic federation with decentralized leadership. Each member state is assumed to have its own redistributive policy and pattern of public consumption, whereas the federal level redistributes (ex-...

If conventional instruments of strategic trade policy are unavailable, the system of foreign profit taxation and transfer price guidelines may serve as surrogate policy instruments. In this paper, I consider a model where firms from two countries compete with each other on a third market. I analyze optimal policy choices of the firms’ residence countries aiming at strategically manipulating the...

This paper studies the interaction between monetary and macro-prudential policies in a simple model with both nominal and financial frictions. The nominal friction gives rise to a conventional monetary policy objective emphasized in the New Keynesian literature. The financial friction, in the form of an occasionally binding collateral constraint, gives rise to a financial stability objective. ...

Accurate policy evaluation is central to optimal policymaking, but difficult to achieve. Most often, analysts have to work with observational data and cannot directly observe the counterfactual of a policy to assess its effect accurately. In this paper, we craft a quasi-experimental design and apply two relatively new methods—the differencein-differences estimation and the synthetic controls me...

f or several decades, the selection of a proper tax base has been among the most serious concerns for the economic policy makers. the computable general equilibrium models analysis provides a comprehensive framework for the investigation of the effects of the adopted policies on the economy of a country. in the present study, using a static computable general equilibrium, the effects of tax re...

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...

Federal laws try to protect taxpayers and recipients of government benefits from the effects of rising prices by specifying that dollar amounts in many parts of the tax code and in some programs be automatically adjusted— or indexed—for inflation. Without such indexing, a rise in the general level of prices would alter the effects of federal policies even in the absence of action by lawmakers. ...