Due to the use of distortionary taxation, many believe that real-world economies should attain a lower level of public expenditures than one might suspect from the analysis of arti cial models where lump-sum taxes are assumed to be available. The paper examines this popular hypothesis by means of the two-type self-selection model of income taxation. I provide su cient conditions for both a lowe...

This paper evaluates the relevance of taxation for public spending efficiency in a sample OECD economies period 2003–2017. We start by computing data envelopment analysis (DEA) scores, and then we evaluate role tax structure explaining these using reduced-form panel regression specification. Our main findings are as follows: inputs could be theoretically lower approximately 32–34% expenditure i...

The potential impact of smart cards is examined in the context of a standard model of direct and indirect taxation. The distinction between the two types of tax is made in terms of the information required to implement them. Electronic cards in general are understood as devices for enriching and certifying information related to individuals and transactions. Smart cards are a subclass of these ...

This paper analyzes the impact of pollution and abatement policy within a stochastic endogenous growth model. The agents have environmental preferences, but they neglect their individual contribution to aggregate abatement. Therefore, environmental care is done by the government and financed via income taxation and government bonds. Equilibrium growth depends on environmental preferences, perce...

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 ...

A non-existent meaning in the field of personal taxation is given to the Frisch parameter. Using an Indirect Addilog System, we formulate a relationship between Frisch parameter and the discretionary income based on the different degree of urgency or priority of needs routed in the values of households’ consumption. As result, the concept of tax capacity can be interpreted in terms of utility, ...