We consider the design of a tax on greenhouse gas emissions for the United States. We consider three major issues: the tax rate (including the use of the revenues and rate changes over time), the optimal tax base, and international trade concerns. We show that a well-designed carbon tax can capture about 80% of U.S. emissions by taxing only a few thousand taxpayers, and almost 90% with a modest...

Fujiwara and Iwama [In: The 13th Annual International Symposium on Algorithms andComputation, pp. 476–488 (2002)] first integrated probability distribution into the classical competitive analysis to study the rental problem. They assumed that the future inputs are drawn from an exponential distribution, and obtained the optimal competitive strategy and the competitive ratio by the derivative me...

This paper examines the implications of tax evasion for "scal competition and tax harmonization policies in an economic union. First, for symmetric countries, it proves that the equilibrium values of the tax and audit rates are less than optimal. Tax harmonization alone will also lead to a less than optimal audit rate. Second, for asymmetric countries, the paper shows that integration may turn ...

This paper studies how the difference between technical depreciation and tax depreciation affects the firm’s optimal investment strategy. The objective is maximization of shareholder value. When tax depreciation differs from technical depreciation, an additional investment not only generates value due to the fact that the firm can produce more, but also due to the fact that an additional deferr...

Pre-tax car prices are particularly low in EU countries with high registration taxes but no car production, meaning that the tax is equivalent to an import tariff and induces international price discrimination. The paper develops a theorectical model to analyse the European Commission's policy of facilitating arbitrage and thereby reducing car price differences. The effects on prices, quantitie...

The purpose of this paper is to present an exercise where we identify optimal income tax rules according to various social welfare criteria, keeping fixed the total net tax revenue. To this end, we estimate a microeconomic model with 78 parameters that capture heterogeneity in consumptionleisure preferences for singles and couples as well as in job opportunities across individuals based on deta...

Designing Optimal Taxes with a Microeconometric Model of Household Labour Supply The purpose of this paper is to present an exercise where we identify optimal income tax rules under the constraint of fixed tax revenue. To this end, we estimate a microeconomic model with 78 parameters that capture heterogeneity in consumption-leisure preferences for singles and couples as well as in job opportun...

We develop an algorithm for computing optimal taxes in an open economy extension of the standard one-sector growth model. Typically in the literature on optimal taxation, the first period tax rate is arbitrarily assumed. We construct an example where the first period tax rate is endogenously determined. In addition to computing the exact time path of taxes, the example brings forth some interes...