NBER WORKING PAPER SERIES RATIONAL ADDICTION, PEER EXTERNALITIES Donald S. Kenkel
... consumption of the addictive good raises the marginal utility of addictive consumption when old (an addiction effect), but also lowers overall utility in the future due to a detrimental health effect. Since individuals make consumption and savings choices simultaneously, an individual’s choice of ad ...
... consumption of the addictive good raises the marginal utility of addictive consumption when old (an addiction effect), but also lowers overall utility in the future due to a detrimental health effect. Since individuals make consumption and savings choices simultaneously, an individual’s choice of ad ...
Intergovernmental Finance in Five Emerging Market Economies
... the balance of power within the federal system and also paved the way for a commitment to improve the role of local governments. Functions generally considered national in character like defence, foreign affairs, international trade and monetary policy are in the central domain. Functions with limit ...
... the balance of power within the federal system and also paved the way for a commitment to improve the role of local governments. Functions generally considered national in character like defence, foreign affairs, international trade and monetary policy are in the central domain. Functions with limit ...
Vertex® Indirect Tax for Retail
... Ordinarily, staying current with the constant changes in each jurisdiction’s tax legislation would be an overwhelming and expensive task for any tax department. But, as described above, the comprehensive set of tax data included with the system unburdens your tax professionals from laborious, time ...
... Ordinarily, staying current with the constant changes in each jurisdiction’s tax legislation would be an overwhelming and expensive task for any tax department. But, as described above, the comprehensive set of tax data included with the system unburdens your tax professionals from laborious, time ...
Risk and Term Structure
... – Yield curves usually slope upward. • In reality, interest rates are just as likely to fall as to rise, so the yield curve if determined by expectations should be flat. ...
... – Yield curves usually slope upward. • In reality, interest rates are just as likely to fall as to rise, so the yield curve if determined by expectations should be flat. ...
RTF - Review of Business Taxation
... industries will increase or reduce overall economic growth, employment and welfare. The resolution of this question can only be taken so far through objective study and economic modelling. At the end of the day, it will remain a matter for judgment by government. However, some of the possible ration ...
... industries will increase or reduce overall economic growth, employment and welfare. The resolution of this question can only be taken so far through objective study and economic modelling. At the end of the day, it will remain a matter for judgment by government. However, some of the possible ration ...
1 Unit 3. Elasticity Learning objectives To comprehend and apply
... unit 2 “Supply and demand”. Suppose at first that market demand and supply curves are given by the following expressions: Qd = 100 - P; Qs = 3P - 20. If the government imposes a tax equal to 8 dollars per unit sold by producers total tax revenues of the government will be T=8.64=512; and the shares ...
... unit 2 “Supply and demand”. Suppose at first that market demand and supply curves are given by the following expressions: Qd = 100 - P; Qs = 3P - 20. If the government imposes a tax equal to 8 dollars per unit sold by producers total tax revenues of the government will be T=8.64=512; and the shares ...
Full Text - Digital Access to Scholarship at Harvard
... business and household sectors. Taxes insert wedges between demand and supply prices for investment and consumption goods and for capital and labor services. These tax wedges distort private decisions and lead to losses in efficiency. In our model the equilibrium of the U.S. economy is characterized ...
... business and household sectors. Taxes insert wedges between demand and supply prices for investment and consumption goods and for capital and labor services. These tax wedges distort private decisions and lead to losses in efficiency. In our model the equilibrium of the U.S. economy is characterized ...
PDF
... taxes policies7. In these papers, alternative policies are typically an emissions tax, a set of emissions permits, a tax on production of fuels, and the command and control policies. These papers show that the emissions tax can be more efficient than other policies in the second best setting if env ...
... taxes policies7. In these papers, alternative policies are typically an emissions tax, a set of emissions permits, a tax on production of fuels, and the command and control policies. These papers show that the emissions tax can be more efficient than other policies in the second best setting if env ...
PDF
... tax policy, we consider arbitrary dynamic tax policies and find both welfare-maximizing and growth-maximizing policies. Finally, our analysis is technically related to Palivos, Wang, and Zhang (1997). In theoretical studies of long-term growth, it is common to focus only on balanced growth paths (BGP ...
... tax policy, we consider arbitrary dynamic tax policies and find both welfare-maximizing and growth-maximizing policies. Finally, our analysis is technically related to Palivos, Wang, and Zhang (1997). In theoretical studies of long-term growth, it is common to focus only on balanced growth paths (BGP ...
A CRITICAL ANALYSIS OF THE EFFECTS OF
... Death taxes are payable by individuals upon their death. It is therefore ironic that the living has devoted so much of their time and energy to arguing about the future of this tax. One can only presume that a person will not find any peace in the after-world if they felt that they were treated unfa ...
... Death taxes are payable by individuals upon their death. It is therefore ironic that the living has devoted so much of their time and energy to arguing about the future of this tax. One can only presume that a person will not find any peace in the after-world if they felt that they were treated unfa ...
CAPITAL AND WEALTH TAXATION IN THE 21sT
... the social welfare function, and the elasticities of labor earnings and capital bequests with respect to tax rates. The optimal tax rate on inheritance is always positive, except of course in the extreme case with an infinite elasticity of capital accumulation with respect to the net-of-tax rate of ...
... the social welfare function, and the elasticities of labor earnings and capital bequests with respect to tax rates. The optimal tax rate on inheritance is always positive, except of course in the extreme case with an infinite elasticity of capital accumulation with respect to the net-of-tax rate of ...
On the Superiority of Corrective Taxes to Quantity Regulation
... discussion thus far. Realistically, firms usually cause externalities over time. When the state collects taxes from a firm, the state learns the level of the externality and thus can make inferences about the firm’s marginal cost schedule. Using this information, the state can adjust the tax rate, a ...
... discussion thus far. Realistically, firms usually cause externalities over time. When the state collects taxes from a firm, the state learns the level of the externality and thus can make inferences about the firm’s marginal cost schedule. Using this information, the state can adjust the tax rate, a ...
Flat Tax Reforms in the U.S.: A Boon for the Income Poor Javier D
... The debate on fundamental tax reforms is heating up as some countries, mostly in Eastern Europe, are starting to adopt flat-tax systems. In recent years academic work has simulated the consequences of such reforms for the U.S. economy. Starting with the seminal book of Hall and Rabushka (1995), acad ...
... The debate on fundamental tax reforms is heating up as some countries, mostly in Eastern Europe, are starting to adopt flat-tax systems. In recent years academic work has simulated the consequences of such reforms for the U.S. economy. Starting with the seminal book of Hall and Rabushka (1995), acad ...
Marginal Cost and Revenue
... Many economic decisions are based on an analysis of the costs and revenues “at the margin”. You are running an airline and decide whether to offer an additional flight. If the flight will make money for the company, it should be added. We need to consider the cost and revenue involved. The crucial q ...
... Many economic decisions are based on an analysis of the costs and revenues “at the margin”. You are running an airline and decide whether to offer an additional flight. If the flight will make money for the company, it should be added. We need to consider the cost and revenue involved. The crucial q ...
TRP99-3 -The Case for Payroll Tax
... It is at times tempting to dismiss economics on the grounds that it appears 'unrealistic', 'too theoretical' and 'not real world' due to its reliance on assumptions. It is argued that the answers to questions about the impact of taxation on 'real jobs' and 'real production' are not found in a text ...
... It is at times tempting to dismiss economics on the grounds that it appears 'unrealistic', 'too theoretical' and 'not real world' due to its reliance on assumptions. It is argued that the answers to questions about the impact of taxation on 'real jobs' and 'real production' are not found in a text ...
Jonathan Eaton Working Paper No. 1512 1050 Massachusetts Avenue Cambridge,
... Proposition 5: Free trade in land will yield a domestic interest rate equal to the world interest rate unless all land is foreign—owned. The domestic interest rate will then exceed the world rate. ...
... Proposition 5: Free trade in land will yield a domestic interest rate equal to the world interest rate unless all land is foreign—owned. The domestic interest rate will then exceed the world rate. ...
perfectly competitive firm`s supply curve
... shutdown point is the point at which the firm's maximized profit is the same regardless of whether the firm produces or temporarily shuts down The shutdown point is the point of minimum average variable cost ...
... shutdown point is the point at which the firm's maximized profit is the same regardless of whether the firm produces or temporarily shuts down The shutdown point is the point of minimum average variable cost ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... economy is extraordinarily high compared to other taxes used by the federal government to raise revenues. There are three reasons for the high cost to the economy of this increased tax on interstate long distance This subsidy is only a small part of a much larger framework of universal service subsi ...
... economy is extraordinarily high compared to other taxes used by the federal government to raise revenues. There are three reasons for the high cost to the economy of this increased tax on interstate long distance This subsidy is only a small part of a much larger framework of universal service subsi ...
Nivedita Mukherji and Fuad Hasanov
... economy as a result of changes in public policy. These results then also raise concerns about the choice of net revenue as the maximand for a government otherwise interested in policies that promote informal production. While theoretically it appears sensible to assume that a proprietory state would ...
... economy as a result of changes in public policy. These results then also raise concerns about the choice of net revenue as the maximand for a government otherwise interested in policies that promote informal production. While theoretically it appears sensible to assume that a proprietory state would ...
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... energy efficiency, and greenhouse gas emissions (EISA, 2007). The U.S. federal government provides income tax credits as high as $7,500 to incentivize the purchase of battery electric vehicles (Krause et al., 2013). Similarly, state and local governments provide credits or exemptions to sales taxes ...
... energy efficiency, and greenhouse gas emissions (EISA, 2007). The U.S. federal government provides income tax credits as high as $7,500 to incentivize the purchase of battery electric vehicles (Krause et al., 2013). Similarly, state and local governments provide credits or exemptions to sales taxes ...
Why Can Modern Governments Tax So Much? An Agency Model of
... This paper presents a simple agency model to explain why third-party information reporting by firms dramatically improves tax enforcement. Modern firms have a large number of employees and carry out complex production tasks, which requires the use of accurate business records. Because such records a ...
... This paper presents a simple agency model to explain why third-party information reporting by firms dramatically improves tax enforcement. Modern firms have a large number of employees and carry out complex production tasks, which requires the use of accurate business records. Because such records a ...
The total revenuetotal cost perspective and the marginal
... (MC). If the marginal revenue is greater than the marginal cost, then the marginal profit is positive and a greater quantity of the good should be produced. Likewise, if the marginal revenue is less than the marginal cost, the marginal profit is negative and a lesser quantity of the good should be p ...
... (MC). If the marginal revenue is greater than the marginal cost, then the marginal profit is positive and a greater quantity of the good should be produced. Likewise, if the marginal revenue is less than the marginal cost, the marginal profit is negative and a lesser quantity of the good should be p ...
Corporate Tax Policy and Unemployment in Europe
... to equilibrium forces. The institutional variables, such as direct and indirect taxes and the replacement rate, are expected to raise the wage rate. They thus exacerbate labour-market imperfections and raise the equilibrium rate of unemployment. The positive impact of the tax variables on producer ...
... to equilibrium forces. The institutional variables, such as direct and indirect taxes and the replacement rate, are expected to raise the wage rate. They thus exacerbate labour-market imperfections and raise the equilibrium rate of unemployment. The positive impact of the tax variables on producer ...
Profit Maximization Profit Maximization Profit
... MC = ∆TC/∆Q • Comparing marginal revenue and marginal cost determines whether the firm needs to supply more or less in order to maximize profit. ...
... MC = ∆TC/∆Q • Comparing marginal revenue and marginal cost determines whether the firm needs to supply more or less in order to maximize profit. ...
Profit Maximization
... determined by comparing marginal revenue and marginal cost. • Marginal cost is the additional cost of producing one more unit of output. • Marginal revenue is the additional revenue from selling one more unit of output. • Profit is maximized at the output level where marginal revenue and marginal co ...
... determined by comparing marginal revenue and marginal cost. • Marginal cost is the additional cost of producing one more unit of output. • Marginal revenue is the additional revenue from selling one more unit of output. • Profit is maximized at the output level where marginal revenue and marginal co ...
Laffer curve
In economics, the Laffer curve is one possible representation of the relationship between rates of taxation and the hypothetical resulting levels of government revenue. The Laffer curve claims to illustrate the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation. It postulates that no tax revenue will be raised at the extreme tax rates of 0% and 100% and that there must be at least one rate where tax revenue would be a non-zero maximum.The Laffer curve is typically represented as a graph which starts at 0% tax with zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate. The shape of the curve is uncertain and disputed.One potential result of the Laffer curve is that increasing tax rates beyond a certain point will be counter-productive for raising further tax revenue. A hypothetical Laffer curve for any given economy can only be estimated and such estimates are controversial. The New Palgrave Dictionary of Economics reports that estimates of revenue-maximizing tax rates have varied widely, with a mid-range of around 70%.Although economist Arthur Laffer does not claim to have invented the Laffer curve concept, it was popularized in the west with policymakers following an afternoon meeting with Ford Administration officials Dick Cheney and Donald Rumsfeld in 1974 in which he reportedly sketched the curve on a napkin to illustrate his argument. The term ""Laffer curve"" was coined by Jude Wanniski, who was also present at the meeting. The basic concept was not new; Laffer himself notes antecedents in the writings of the 14th century Arab Muslim social philosopher Ibn Khaldun.