We construct a new database of extensive margin changes to multiple aspects of corporate tax bases for OECD countries between 1980 and 2004. We use our data to systematically document the tendency of countries to implement policies that both lower the corporate tax rate and broaden the corporate tax base. This correlation informs our interpretation of previous estimates of the relationship betw...

This paper analyzes the effect of personal income taxation on the sensitivity of executive compensation to company performance and the use of stock option and restricted stock grants underlying this sensitivity. The theoretical model predicts that, if a single tax rate applies to the entire compensation package, an increase in the tax rate weakly diminishes the equilibrium level of managerial e...

This paper argues that a risk averse of workers after-tax reservation wage the difference between her reservation wage and the tax needed to fund the unemployment insurance system when liquidity constraint binds exists and it is unique. The optimality of unemployment insurance based on the responsiveness of reservation wage to unemployment benefit shows the disincentive effect, i.e. higher unem...

This paper explores the use of a loglinear tax and transfer function, displaying increasing marginal and average tax rates along with a means-tested transfer payment. The two parameters are a break-even income threshold, where the average tax rate is zero, and a tax parameter equivalent to the marginal tax rate at the breakeven income level. When combined with Cobb-Douglas utility, the resultin...

T he welfare cost of inflation in a new Keynesian model has been studied in this article. Nominal prices and wages are subjected to Rotenberg's adjustments in the benchmark model. In addition, this study uses the CIA model to compare the welfare cost of seigniorage tax and consumption tax. The model is calibrated for the Iranian economy and the results of the calibration are as follow...

this paper, i have focused on the tax side of the fiscal policy to  investigate the past and future behavior of fiscal sustainability in iran. to do so, i have employed two different forward-looking and backward-looking approaches. first, the backward-looking approach is the fiscal policy rule proposed by daving & leeper (2011). precisely, this rule determines that whether the fiscal policy is ...

An income tax is equivalent to a uniform tax on all expenditures, including expenditures on commodity tax payments. This will compound the tax being applied to any taxed commodity. In the presence of an income tax, therefore, any expenditure tax (including a pollution tax) will produce a higher effective tax than its nominal tax rate would suggest. For example, a nominal Pigouvian tax applied t...