Showing papers in "Journal of Public Economics in 1997"

TL;DR: In this article, the authors examined the growth effects of tax policy in the class of endogenous growth models driven by human capital accumulation, and numerical simulations of these models confirm the results Harberger predicted.

TL;DR: In this paper, the authors used a broadly familiar and reasonably rich model of fiscal competition in the presence of mobile capital, and established a systematic bias in public spending patterns: starting from the non-cooperative equilibrium, and holding tax rates constant, welfare would be improved by a coordinated reduction in the provision of local public inputs and a corresponding increase in the public provision of public public goods benefiting immobile consumers.

TL;DR: In this paper, the authors developed a model in which consumers purchase a conspicuous good in order to signal high income and thereby achieve greater social status, and derived some unconventional policy implications concerning the taxation of luxuries and the voluntary provision of public goods.

TL;DR: This paper showed how the power of fiscal policy to affect consumption can vary depending on the level of public debt and showed that when debt reaches extreme values, current generations of consumers know there is a high probability that they will have to pay extra taxes.

TL;DR: In this article, three models are presented which illustrate this wisdom: congestion-prone public goods, the insurance function of redistributive taxation, and the role of quality regulation and show that systems competition may suffer from adverse selection.

TL;DR: In this paper, the authors investigate firms' incentives for banking or borrowing emission permits and compare the emission and output streams firms would choose with the socially optimal solution, finding that in many cases firms will suboptimally choose excessive damage and output levels in early periods and correspondingly too few in later periods if given the opportunity to freely move emissions between time periods.

TL;DR: In this article, the authors apply the theory of the voluntary provision of a pure public good to the behavior of nations to curb chlorofluorocarbon (CFC) emissions during the late 1980s.

TL;DR: In this paper, the effects of tax and wage controls in a developing economy with an informal sector are studied. And the authors build a model with firm heterogeneity, in which a formal and an irregular sector endogenously emerge in some productive branches of the economy.

TL;DR: In this paper, the efficiency implications of an alternative policy currently in use in some states in the U.S. and considered at the federal level, recycled content standards, were assessed and it was shown that such standards by themselves cannot generate the optimal amount of disposal but must be combined with additional taxes on both the final product and other inputs to production.

TL;DR: The authors argued that the progressivity of the labour income tax serves to reduce the private return to human capital investment, thereby offsetting the tendency of a proportional comprehensive income tax to discriminate in favour of such investment.

TL;DR: In this article, the authors explore how an environmental tax reform impacts pollution, economic growth and welfare in an endogenous growth model with pre-existing tax distortions and find that a shift in the tax mix away from output taxes towards pollution taxes may raise economic growth through two channels.

TL;DR: In this article, the effects of tax-revolt era property tax limitations on school services were analyzed using detailed school-level data from 49 states to analyze the effect of these limitations on student performance.

TL;DR: In this paper, a preliminary investigation into whether nationality makes a difference as far as free-riding is concerned was conducted and it was found that there is a strong effect on behaviour resulting from national differences (which reflect cultural and sociological differences between subject groups), both on average contribution and on the attitude toward playing in stranger or partner sessions.

TL;DR: In this article, the authors investigate three different schemes for financing incremental infrastructure within an urban growth model, comparing an impact-fee scheme to two types of cost-sharing schemes, deriving the effects on urban growth and land values.

TL;DR: In this article, the authors investigate the effects of trying to mitigate moral hazard in the disability insurance (DI) program by raising the stringency of the screening process for applicants, and find that each 10% rise in denial rates led to a statistically significant 2.8% fall in labor force non-participation among 45-64 year old males.

TL;DR: In this article, a tax limitation measure limits the growth in local property taxes in some Illinois jurisdictions, but not in others, providing a natural experiment for estimating the impact of the tax cap on local government fiscal behavior.

TL;DR: In this paper, the interrelationship between employment separation and insurance coverage was studied and it was shown that reducing the cost of insurance through state laws mandating continued access to employer-provided health insurance for the non-employed increases the likelihood of having insurance after separating from a job by 6.7%.

TL;DR: The authors found no evidence that welfare raises the propensity to form female-headed households for either whites or blacks. And they also suggest that previous studies may have overstated the effect of welfare programs on family structure.

TL;DR: In this paper, the authors show that minimum wages may have beneficial effects on human capital allocation in a situation when the marginal product of skilled labor is shared between firm and worker according to bargaining strength.

TL;DR: In this article, a special case in a continuous-time dynamic framework is examined and is found to be efficient, i.e. there is no externality, raising doubts about the suitability of a static approach.

TL;DR: In this paper, the authors examine an environment of costly state verification in which insureds possess private information about the magnitude of an insurable loss, and they show that optimal insurance contracts mitigate the incentives to evade by a combination of incentives, which include the overpayment of easily monitored losses and undercompensation for claims exhibiting higher verification costs.

TL;DR: In this paper, a model in which social ties between individuals and private contributions to a local public good are interrelated is presented, where ties are formalized by means of utility interdependence, and depend on the history of social interaction.

TL;DR: A highly significant correlation is found between the quality of life a person expects to achieve at an advanced age and the insurance premium a person is willing to pay in exchange for a programme increasing the expected length of life by one year.

TL;DR: A survey of Cameroonian businesses, a country seemingly typical of its economic level, demonstrates widespread erosion of the tax bases paid by businesses through exemptions and evasion as mentioned in this paper, and businesses seem willing to provide information on these potentially confidential activities.

TL;DR: The authors examine the case of a tax or government mandate whose cost differs across firms within the same labor market and show that this variation can lead to employment reallocation across firms and dead-weight losses, even if there is no aggregate employment effect.

TL;DR: In this paper, the authors examined the distributional properties of poverty measures which are discontinuous at the poverty line, and showed that among all the additive poverty measures, only those measures with some discontinuous jump at poverty line are such that it is optimal to allocate a given antipoverty budget either to the richest of the poor, or to the poorest of the rich, or both.

TL;DR: There is a significant positive relationship between the marriage penalty in a year and the probability of delaying marriage until the following year.

TL;DR: In this paper, the authors show that a country would make use of both taxes in order to minimize the efficiency costs of evasion activity, relying relatively more on whichever tax is harder to evade.

TL;DR: This article investigated the relationship between internal and external funding of academic research and found that additional funding from each of these sources enhances the amount provided by the other over time, consistent with the hypothesis that external sponsors wish to allocate funding to those universities that do the highest quality research, and that funding from either source provides information about quality.

TL;DR: In this paper, the authors study the impact of elected officials' re-election concerns on their decisions on whether to undertake new projects and show how their analysis can be applied to bidding wars among jurisdictions for firms.