tax rate

In a model which allows for international trade in goods market and money markets, interactions between the capital tax rate and the inflation rate are examined. It's noticed that connections of capital tax rate and inflation rate create horizontal and vertical externalities. Best levels of the capital tax rate and ...

We analyze the way a multinational’s approach to centralize or de-centralize its decision structure is impacted by country tax differentials. Within a simple model which focuses on the several conflicting roles of transfer prices in MNEs - here, as a strategic pre-commitment device and a tax adjustment instrument, we demonstrate ...

We impose a horizontal equity restriction on the problem of finding the optimal utilitarian tax mix. The horizontal equity constraint requires that individuals with the same ability have to pay the same amount of taxes regardless of their preferences for leisure. Contrary to normal findings, we find that a good ...

A theoretical model of excise tax evasion is developed in this paper. The dynamics of a change in tax policy is derived, under the assumption that consumers benefit from a lower price when entering a "black market". However, entry also impose a sunk cost, which gives rise to asymmetric effects ...