We assess the implications of demographic uncertainty for the budgetary position in Belgium, Denmark, Finland, Germany, the Netherlands, Spain and the United Kingdom. We evaluate the frequency distribution of the increase in taxes needed to deliver fiscal solvency.

The question of whether or not fiscal policy stimulates growth has dominated theoretical and empirical debate for a long time. One viewpoint believes that government involvement in economic activity is vital for growth, but an opposing view holds that government operations are inherently bureaucratic and inefficient and therefore stifles rather than promotes growth. In the empirical literature,...

We study the optimal one-shot tax reform in standard incomplete markets model where households differ their wealth, earnings, permanent labor skill, and age. The government can provide transfers by raising revenue has several instruments at its disposal: a flat capital income tax, consumption non-linear tax. fiscal policy funds transfer that is nearly 50 percent of GDP through combination very ...

This paper provides an updated assessment of economically efficient taxes on gasoline (used by light-duty vehicles) and diesel (used by heavy-duty trucks) to address various highway externalities in the United States. The (second-best) corrective fuel taxes are estimated, and we discuss the implications of fuel economy regulations and prospective (nationwide) controls on carbon emissions. We al...

Under what is known as the situs rule, a 1 percent locally levied sales tax is collected by the state but returned to the jurisdiction where the sale occurred. Thus, the situs rule gives cities an incentive to promote the location of retail businesses within their boundaries—an incentive that does not exist for residential or industrial development. Although sales taxes are a modest share of to...

Using the standard real business cycle model with lump-sum taxes, we analyze the impact of fiscal policy when agents form expectations using adaptive learning rather than rational expectations (RE). The output multipliers for government purchases are significantly higher under learning, and fall within empirical bounds reported in the literature, which is in sharp contrast to the implausibly lo...

We show that imposition of a state-level environmental tax in a federation crowds out preexisting federal taxes. We explain how this vertical fiscal externality can lead unilateral statelevel environmental policy to generate a welfare gain in the implementing state, at the expense of other states. Using a computable general equilibrium model of the Canadian federation, we show that vertical fis...

Natural resource dependent economies are totted of being in a cycle economic boom and slump, the natural curse. This paper looks at management compares relations between prices copper macroeconomic performance Chile Zambia, two copper-rich countries with contrasting fortunes. It explores fiscal policies mining taxes regimes, non-fiscal benefits mining. Eleven indicators used to compare domestic...