Since World War II, raising public spending has been one of the main policies to address recessions. A wealth literature about austerity and fiscal consolidation published analyze different stabilization plans executed by several countries worldwide. This paper aims demonstrate that based on cuts are more effective in achieving finance equilibrium boosting growth employment. We focus analysis f...

Exempting online transactions from sales taxes while taxing their brick-andmortar counterparts is bad fiscal policy for several reasons. First, failure to impose the sales tax on online purchases will cause significant revenue losses for state and local governments that collect more than one-fifth of their combined tax revenues from the sales tax. In addition, different sales tax treatment of o...

Ever since the Great Recession, public debt has become politicised. Some research suggests that citizens are fiscally conservative, while other shows they punish governments for implementing fiscal consolidation. This begs question of whether and how much care about debt. We argue is not a priority because reducing it involves spending tax trade-offs. Using split-sample experiment conjoint in f...

There is no clear-cut evidence on how the adoption of the European fiscal standards influences discretionary fiscal policies within the Member States. This study investigates that phenomenon on the example of the 2004 enlargement. The results show that the effects of the adoption of EU fiscal rules bring a statistically significant change towards more countercyclical behavior. The results are r...

The standard analysis of the efficient management of income taxes and debt assumes a benevolent government and ignores potential distortions arising from rent-seeking politicians. This paper departs from this framework by assuming that a rent-seeking politician chooses policies. If the politician chooses extractive policies, citizens throw him out of power. We analyse the efficient sustainable ...

Fiscal considerations may shift governmental priorities away from environmental concerns: Finance ministers face strong demand for public expenditures such as infrastructure investments but they are constrained by international tax competition. We develop a multi-region model of tax competition and resource extraction to assess the fiscal incentive of imposing a tax on carbon rather than on cap...

This paper studies the dynamic Ramsey taxation of foreign assets in a small open economy model with international mobility of capital. The benevolent government of the small open economy chooses taxes on factors of local production and net foreign assets to finance an exogenous stochastic stream of government expenditures. The government can fully commit to future policies and balanced budgets,...

The debate on fiscal federalism in the European Community has become intense as the deadline for the creation of a single market draws nearer. This development stems from two broad classes of reasons. First of all, there are immediate effects from markets’ integration. Without barriers to trade taxes may need to be harmonized, compromising the ability of any single country to pursue policies in...

Urban transportation externalities are a key development challenge. Based on the existing literature, the authors illustrate the magnitudes of various external costs, review response policies, and measure and discuss their selection, particularly focusing on the context of developing countries. They find that regulatory policy instruments aimed at reducing local air pollution have been introduc...

EUROPEAN GOVERNMENTS REDISTRIBUTE income among their citizens on a much larger scale than does the U.S. government. European social programs are more generous and reach a larger share of citizens. European tax systems are more progressive. European regulations designed to protect the poor are more intrusive. In this paper we try to understand why. The literature on the size of government is ric...