The Experts below are selected from a list of 3687 Experts worldwide ranked by ideXlab platform
Elizabeth Chorvat - One of the best experts on this subject based on the ideXlab platform.
-
optimal distortionary Taxation
Social Science Research Network, 2018Co-Authors: Elizabeth ChorvatAbstract:This paper is intended to offer a modest extension to the common understanding of the common agency model, originally developed in the trade literature to describe interactions between interests groups and politicians, but as applied in recent years to lobbying as it relates to tax policy. The prevailing understanding of the model, and notably as articulated by Dixit, Grossman, and Helpman, is that the government will always adopt efficient policies. The main contribution of this paper is the demonstration that. by introducing the issue of collective action problems in lobbying to the common agency model, we would not expect to observe efficient tax instruments such as Lump-Sum Taxation. That is, we should actually expect to observe distortionary forms of Taxation and subsidies, even though they do not maximize total surplus. Moreover, and perhaps paradoxically, we see that distortionary tax instruments may actually result in a higher level of efficiency than non-distortionary instruments.
James Andreoni - One of the best experts on this subject based on the ideXlab platform.
-
an experimental test of the public goods crowding out hypothesis
The American Economic Review, 1993Co-Authors: James AndreoniAbstract:This paper presents an experimental test of the proposition that government contributions to public goods, funded by Lump-Sum Taxation, will completely crowd out voluntary contributions. It is found that crowding-out is incomplete and that subjects who are taxed are significantly more cooperative. This is true even though the tax does not affect the Nash equilibrium prediction. This result is taken as evidence for alternative models that assume people experience some private benefit from contributing to public goods. Copyright 1993 by American Economic Association.
Aleh Tsyvinski - One of the best experts on this subject based on the ideXlab platform.
-
optimal Taxation with endogenous insurance markets
Quarterly Journal of Economics, 2007Co-Authors: Mikhail Golosov, Aleh TsyvinskiAbstract:In this paper, we study optimal tax policy in a dynamic private information economy. We describe e¢ cient allocations and competitive equilibria. The standard assumption in the literature is that trades are observable by all agents. We show that in such an environment the competitive equilibrium is e¢ cient and that government consumption can be …nanced by Lump-Sum Taxation. We go on to consider an environment with unobservable trades in competitive markets. We show that e¢ cient allocations have the property that the marginal product of �
Aakrit Joshi - One of the best experts on this subject based on the ideXlab platform.
-
economic trade offs between hydroelectricity production and environmental externalities a case for local externality mitigation fund
Renewable Energy, 2018Co-Authors: Veeshan Rayamajhee, Aakrit JoshiAbstract:Abstract Many proposed solutions for mitigating environmental externalities from hydroelectricity generation raise equity concerns and do not adequately address uncertainties and fluctuations in energy production. To balance the disparity caused by locally concentrated negative externalities and nationally or globally dispersed benefits, this study makes a case for the adoption of a locally negotiated endogenous externality mitigation fund (EMF) – one that directly compensates individuals for the specific environmental externality – as a policy alternative to Lump-Sum Taxation and/or indirect measures such as integrating externality costs into energy prices. Using downstream crop damage due to the restricted flow of water as a representative externality, we employ optimal control framework to conduct comparative analyses of exogenous and endogenous EMFs relative to the base case with no EMF. Our findings show that endogenous EMF, when compared to the base case, reduces crop loss by 87.5% with a corresponding energy production trade-off of 11.8%. On the other hand, exogenous EMF, contrary to its purported intent, exacerbates externality by incentivizing the firm to increase production to self-compensate for the payment towards the fund. Results indicate that endogenizing the EMF is preferable because the consequential reduction in energy production is economically outweighed by the externality damages avoided.
Leopold Von Thadden - One of the best experts on this subject based on the ideXlab platform.
-
distortionary Taxation debt and the price level
Journal of Money Credit and Banking, 2009Co-Authors: Andreas Schabert, Leopold Von ThaddenAbstract:This paper considers the nominal and real determinacy of equilibria under an exogenously specifi ed path of interest rates in an economy in which Taxation is either Lump-Sum or distortionary. Under Lump-Sum Taxation, we confirm the well-known finding that equilibria display nominal (in)determinacy if the primary surplus is exogenous (endogenous). Under distortionary Taxation, this classification is no longer relevant. Nominal determinacy is always ensured since distortionary taxes establish a link between the allocation and the sequences of taxes and debt and, hence, the price level, regardless of whether the primary surplus is exogenous or endogenous. Distortionary Taxation, however, increases the scope for real indeterminacy. As a general feature, the real (in)determinacy of equilibria depends on the interaction of fiscal and monetary policies, i.e. on the sequences of taxes, debt, and interest rates. If, for example, fiscal policy runs a balanced budget the central bank should set the nominal interest rate in a way consistent with long-run deflation in order to ensure real determinacy. This finding is different from a balanced-budget policy under Lump-Sum taxes where no such qualification with respect to the interest rate needs to be made.
-
distortionary Taxation debt and the price level
Research Papers in Economics, 2006Co-Authors: Andreas Schabert, Leopold Von ThaddenAbstract:This paper considers the nominal and real determinacy of equilibria under an exogenously specified path of interest rates in an economy in which Taxation is either Lump-Sum or distortionary. Under Lump-Sum Taxation, we confirm the well-known finding that equilibria display nominal (in)determinacy if the primary surplus is exogenous (endogenous). Under distortionary Taxation, this classification is no longer relevant. Nominal determinacy is always ensured since distortionary taxes establish a link between the allocation and the sequences of taxes and debt and, hence, the price level, regardless of whether the primary surplus is exogenous or endogenous. Distortionary Taxation, however, increases the scope for real indeterminacy. As a general feature, the real (in)determinacy of equilibria depends on the interaction of fiscal and monetary policies, i.e. on the sequences of taxes, debt, and interest rates. If, for example, fiscal policy runs a balanced budget the central bank should set the nominal interest rate in a way consistent with long-run deflation in order to ensure real determinacy. This finding is different from a balanced-budget policy under Lump-Sum taxes where no such qualification with respect to the interest rate needs to be made. JEL Classification: E31, E63
