the corporate income tax rate plays a worthwhile role in developing fiscal and tax policies for companies, lawmakers and analysts. so, one of the most important issues in tax field, is to determine effective tax rates. the study and scientific calculations of the effective tax rates provide an enhanced tax justice and a careful study of tax pressure on taxpayers would be possible. the objective...

In this paper we measure the effect of the inflation tax on economic activity and welfare within a controlled setting. To do so, we develop a model of price posting and monetary exchange with inflation and finite populations. The model, which provides a game–theoretic foundation to Rocheteau and Wright (2005)'s competitive search monetary equilibrium, is used to derive theoretical propositions ...

We study optimal fiscal and monetary policy in an environment where explicit frictions give rise to valued money, making money essential in the sense that it expands the set of feasible trades. Our main results are in stark contrast to the prescriptions of earlier flexible-price Ramsey models. The two most important findings that emerge from our work are that the Friedman Rule is typically not ...

in present paper, first the concept of informal economy and its place in the economic literature has been described. then the causes and factors involved in providing the informal sector was examined and the volume of informal economy was estimated. second, the effect of inflation on informal economy was surveyed. to estimate the volume of informal sector, residual discrepancy method was used a...

A Search Model of Unemployment and Inflation In this paper, I introduce money in the standard labor-matching model (Mortensen and Pissarides 1999, Pissarides 2000). A double coincidence problem makes Fiat Money necessary as a medium of exchange. In the long-run, a rise in the rate of money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. ...

This paper examines various interest rate rules, as well as policies derived by solving optimal control problems, for their ability to dampen economic fluctuations caused by random shocks. A tax rate rule is also considered. A multicountry econometric model is used for the experiments. The results differ sharply from those obtained using recent models in which the coefficient on inflation in th...

BREE years after its enactment, controversy still surrounds the Economic Recovery Tax Act of 1981 (ERTA) and its successor, the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). On the one hand, the Reagan administration claims that the 1981 tax reductions substantially increased U.S. business investment and contributed to the strong recovery from the 1981—82 recession’. On the other ha...

Mankiw [12] argues that governments should equate the marginal losses of both taxation and seigniorage revenues to finance their spending. His model-the revenue smoothing hypothesisimplies that governments' tax and seigniorage revenues must move together. However, different types of political parties might be more concerned about creating seigniorage. The partisan theory argues that right-wing ...