| 1. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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A Note on Public Goods in a Decentralized Fiscal Union : Implications of a Participation Constraint
- 2014
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Ingår i: Journal of Urban Economics. - : Elsevier. - 0094-1190 .- 1095-9068. ; 84, s. 1-8
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Tidskriftsartikel (refereegranskat)abstract
- This paper re-examines the question of whether federal ex-post redistribution in terms of public funds leads to under-provision of public goods when member states may leave the economic federation. We show that federal ex-post redistribution under a binding participation constraint does not necessarily mean under-provision of local and federal public goods.
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| 2. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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An optimal tax approach to alcohol policy
- 2010
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Ingår i: Finanzarchiv. - : Mohr Siebeck. - 0015-2218 .- 1614-0974. ; 66:2, s. 153-169
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Tidskriftsartikel (refereegranskat)abstract
- This paper deals with optimal income and commodity taxation in an economy, where alcohol is an externality-generating consumption good. In our model, alcohol can be bought domestically, imported, or produced illegally. Border trade alone implies an incentive to set the domestic alcohol tax below the marginal social damage of alcohol, and to tax (subsidize) commodities that are complementary with (substitutable for) alcohol. The income tax will also be used as a corrective instrument. Furthermore, although the effects of adding illegal production are ambiguous in general, a realistic outcome is, nevertheless, that it reduces both the optimal alcohol tax and the marginal income tax rate.
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| 3. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Efficient taxation, wage bargaining and policy coordination
- 2004
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Ingår i: Journal of Public Economics. - : Elsevier. - 0047-2727 .- 1879-2316. ; 88:12, s. 2711-2725
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Tidskriftsartikel (refereegranskat)abstract
- This paper is related to the literature on optimal nonlinear taxation under right-to-manage wage formation, and we assume that the fall-back profit facing firms during wage bargaining depends on the profit they can obtain if moving production abroad. The purpose is to study how policy coordination among countries can be used to increase the welfare level in comparison with an uncoordinated equilibrium. We consider coordinated policy reforms with respect to the marginal taxation of labor income, the unemployment benefit and the provision of a public good. The results show that policy coordination that leads to fewer hours of work per employee and/or a reduction of the unemployment benefit will increase welfare compared to the uncoordinated equilibrium.
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| 4. |
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| 5. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Local public goods and income heterogeneity
- 2006
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Ingår i: The theory and practice of environmental and resource economics. - Cheltenham : Edward Elgar Publishing Limited, Cheltenham. - 1845426495 - 9781845426491 ; , s. 85-101
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Bokkapitel (refereegranskat)
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| 6. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Mixed Taxation and Transboundary Externalities : A Model with Large Jurisdictions
- 2014
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Ingår i: Public Finance Review. - : Sage Publications. - 1091-1421 .- 1552-7530. ; 42:2, s. 254-282
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Tidskriftsartikel (refereegranskat)abstract
- This paper concerns income taxation and commodity taxation in a multi-jurisdiction framework with transboundary environmental damage. The decision-problem facing the government in each such jurisdiction is represented by a two-type model (with asymmetric information between the government and the private sector). We show how the possibility to influence the world-market producer price adds mechanisms of relevance for redistribution and externality-correction which, in turn, affect the domestic use of taxation. Finally, with the noncooperative Nash equilibrium as a reference case, we consider the welfare effects of policy coordination.
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| 7. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Mixed taxation, public goods and transboundary externalities : a model with large jurisdictions
- 2008
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper concerns income taxation, commodity taxation, production taxation and public good provision in a multi-jurisdiction framework with transboundary environmental damage. We assume that each jurisdiction is large in the sense that its government is able to influence the world-market producer price of the externality-generating commodity. The decision-problem facing the government in each such jurisdiction is represented by a two-type model (with asymmetric information between the government and the private sector). We show how the possibility to influence the world-market producer price adds mechanisms of relevance for redistribution and externality-correction which, in turn, affect the domestic use of taxation and public goods. Finally, with the noncooperative Nash equilibrium as a reference case, we consider the welfare effects of policy coordination.
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| 8. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Optimal income taxation and social norms in the Labor market
- 2010
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Ingår i: International Tax and Public Finance. - : Springer. - 0927-5940 .- 1573-6970. ; 17:1, s. 67-89
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Tidskriftsartikel (refereegranskat)abstract
- This paper concerns optimal income taxation in a two-type model extended to allow for social interaction and social norms in the labor market. One norm refers to “normal behavior” with respect to work hours (the hours of work norm), whereas another means that “one should earn one’s living by working” (the participation norm). The results show how the hours of work norm gives rise to a corrective motive for using income taxation. We also show how the interaction between the hours of work norm and the private incentive to participate in the labor market (which reflects the participation norm) gives rise to an employment motive for using the income tax.
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| 9. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Optimal taxation and asymmetric information in an economy with second-hand trade
- 2008
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper concerns optimal income and commodity taxation in a two-type overlapping generations model, where used durable goods are traded in a second-hand market. As second-hand transactions are difficult to observe, we assume that the government is unable to directly control second-hand transactions via commodity taxation. A basic question is how the government in this case may use the second-hand market as a channel for relaxation of the self-selection constraint. We show how the appearance of a second-hand market for used durable goods affects the optimal use of labor income and capital income taxation as well as the optimal use of commodity taxation on new durable goods.
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| 10. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Optimal Taxation, Redistribution, and Environmental Externalities
- 2017
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Ingår i: International Review of Environmental and Resource Economics. - : Umeå University. - 1932-1465 .- 1932-1473. ; 11:3, s. 233-308
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper surveys research on optimal redistributive taxation in economies with environmental externalities. A major question is whether externality correction only motivates an adjustment of the tax policy rule for the externality-generating activity, or whether the marginal value of the externality directly enters the policy rules for other tax instruments as well. In a static benchmark model with an atmospheric consumption externality, where the government uses a mix of a nonlinear income tax and linear commodity taxes, we show that Sandmo’s (1975) additivity property applies. This means that externality correction leads to an additional term (measuring the marginal value of the externality) in the commodity tax formula for the externality generating good, while the policy rules for commodity taxation of clean goods and marginal income taxation take the same form as in the absence of any externality. We also extend this benchmark model to capture a number of scenarios (such as non-atmospheric externalities, border trade in the externality generating good, and competition between governments in a multi-country framework), where the additivity property no longer applies. We end by examining an intertemporal model of optimal taxation with a stock-externality, allowing us to integrate the study of optimal redistributive taxation with literature on environmental economics and policy based on dynamic models.
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| 11. |
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| 12. |
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| 13. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Public provision of private goods and equilibrium unemployment
- 2005
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Ingår i: Finanzarchiv. - Tübingen, Germany : Mohr Siebeck. - 0015-2218 .- 1614-0974. ; 61:3, s. 353-367
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Tidskriftsartikel (refereegranskat)abstract
- This paper deals with public provision of a private good in a two-type model with optimal nonlinear income taxation. We assume that the wage rates are determined by bargaining between unions and firms, meaning that the equilibrium is characterized by unemployment. The results show that imperfect competition in the labor market gives rise to additional policy incentives associated with the self-selection constraint, which may justify either more or less public provision than under perfect competition. The paper also addresses employment-related motives behind public provision of private goods.
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| 14. |
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| 15. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Quasi-hyperbolic discounting, paternalism and optimal mixed taxation
- 2016
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Ingår i: Mathematical Social Sciences. - Amsterdam : Elsevier. - 0165-4896 .- 1879-3118. ; 84, s. 24-36
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Tidskriftsartikel (refereegranskat)abstract
- This paper develops a dynamic model with endogenous labor supply, savings and health capital, where the consumers differ in ability as well as suffer from a self-control problem generated by quasi-hyperbolic discounting. The purpose is to analyze how a paternalistic government, which implements a time-consistent mix of labor income taxation, capital income taxation and commodity taxation, ought to use this tax system for purposes of redistribution and correction when individual ability is private information. Among the results, we show how the (nonlinear) income taxes ought to be used as indirect instruments for influencing the commodity demand behavior at the individual level: the intuition is that linear commodity taxes are not flexible enough to achieve proper incentives for consumption of unhealthy goods.
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| 16. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Social Comparisons and Optimal Taxation in a Small Open Economy
- 2016
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Almost all previous studies on optimal taxation and status consumption are based on closed model-economies. This paper analyzes how international capital mobility – which may constrain the use of capital income taxation – affects the optimal redistributive income tax policy in a small open economy when consumers care about their relative consumption. If the government can perfectly observe (and tax) returns on savings abroad, it is shown that the policy rules for marginal labor and capital income taxation derived for a closed economy largely carry over to the small open economy analyzed here. However, if these returns are unobserved by the government, the marginal tax policy rules will be very different from those pertaining to closed model-economies. In this case, capital income taxes on domestic savings will be completely ineffective, since such taxes would induce the consumers to move their savings abroad. The labor income tax must then indirectly also reflect the corrective purpose that the absent capital income tax would otherwise have had.
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| 17. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Social Comparisons and Optimal Taxation in a Small Open Economy
- 2019
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Ingår i: Scandinavian Journal of Economics. - : John Wiley & Sons. - 0347-0520 .- 1467-9442. ; 121:4, s. 1500-1532
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Tidskriftsartikel (refereegranskat)abstract
- In this paper, we analyze how international capital mobility affects the optimal labor and capital income tax policy in a small open economy when consumers care about relative consumption. The main results crucially depend on whether the government can tax returns on savings abroad. If the government can use flexible residence-based capital income taxes, then the optimal policy rules from a closed economy largely carry over to the case of a small open economy. If it cannot, then capital income taxes become completely ineffective. The labor income taxes must then indirectly also reflect the corrective purpose that the absent capital income tax would have had.
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| 18. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Tax policy and present-biased preferences : paternalism under international capital mobility
- 2014
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Ingår i: Journal of Economic Behavior and Organization. - : Elsevier. - 0167-2681 .- 1879-1751. ; 106:October, s. 298-316
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Tidskriftsartikel (refereegranskat)abstract
- This paper deals with tax-policy responses to quasi-hyperbolic discounting. Earlier research on optimal paternalism typically abstracts from capital mobility. If capital is mobile between countries, it may no longer be possible for national governments to control domestic savings via capital taxation (as in a closed economy). In this paper, we take a broad perspective on public policy responses to self-control problems by showing how these responses vary (i) between closed and open economies, (ii) between small open and large open economies, and (iii) depending on whether or not both source based and residence based capital taxes can be used.
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| 19. |
- Arvaniti, Maria, et al.
(författare)
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Temptation in consumption and optimal taxation
- 2023
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Ingår i: Journal of Economic Behavior and Organization. - : Elsevier. - 0167-2681 .- 1879-1751. ; 205, s. 687-707
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Tidskriftsartikel (refereegranskat)abstract
- This article aims to integrate temptation preferences into the theory of optimal taxation with heterogenous agents and asymmetric information. Consumers are tempted to over-consume a commodity which may lead to an over-supply of labor. Resisting this temptation implies a utility cost and any policy that reduces this cost is welfare improving. We uncover novel channels for government intervention and the interaction between the welfare improving and redistributive roles of public policy. We also identify a commitment mechanism that works through the endogenous labor choice and affects the design and effectiveness of the optimal tax policy.
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| 20. |
- Backlund, Kenneth, 1966-, et al.
(författare)
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Effects of migration on tax policy in the EU countries : an empirical analysis
- 2011
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Ingår i: China-USA Business Review. - : David Publishing Company. - 1537-1514 .- 1555-7901. ; 10:7, s. 508-515
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Tidskriftsartikel (refereegranskat)abstract
- In this paper, we study whether migration affects taxes on labor and capital income. The analysis is based on panel data for 14 European countries. The results indicate that migration does affect subsequent tax rates, and taxes on labor income increase with increased migration, especially in countries with large public sectors. However, this effect is reduced for countries with large foreign trade and/or large shares of elderly in the population.
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| 21. |
- Hellström, Jörgen, et al.
(författare)
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Stock Exchange Mergers and Weak-Form Information Efficiency : Evidence from the OMX Nordic and Baltic Consolidation
- 2018
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Ingår i: The Nordic Journal of Business. - Aalto : Association of business Schools, Aalto University. - 2342-9003 .- 2342-9011. ; 67:2, s. 114-136
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Tidskriftsartikel (refereegranskat)abstract
- In this paper, we study whether the creation of a uniform Nordic and Baltic stock trading platform has affected weak-form information efficiency. A time-varying measure of return predictability for individual stocks is used in a panel-data seting to test for stock market merger effects. The results indicate that the stock market consolidations have had a positive effect on the information efficiency and turnover for an average firm. The merger effects are, however, asymmetrically distributed, indicating, among other, a flight to liquidity effect, i.e. relatively large (small) firms located on relatively large (small) markets experience an improved (reduced) information efficiency.
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| 22. |
- Lundström Tjurhufvud, Christian, 1980-
(författare)
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On the profitability of momentum strategies and optimal leverage rules
- 2020
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This thesis consists of an introductory part and five self-contained papers related to the profitability of momentum strategies and optimal leverage rules.Paper [I] tests the success rate of trades and the returns of the Opening Range Breakout (ORB) day trading strategy. A trader that trades the ORB strategy seeks to identify large intraday price movements and trades only when the price moves beyond some predetermined threshold. We present an ORB strategy based on normally distributed returns to identify such days, and find that our ORB trading strategy result in significantly higher returns than zero as well as an increased success rate in relation to a fair game when applied to a long time series of crude oil futures contracts. The characteristics of such an approach over conventional statistical tests is that it involves the joint distribution of low, high, open and close over a given time horizon.Paper [II] assesses the returns of the Opening Range Breakout (ORB) day trading strategy across volatility states of the underlying asset. We calculate the average daily returns of the ORB strategy for each volatility state when applied on long time series of crude oil and S&P 500 index futures contracts. We find an average difference in returns between the highest and lowest volatility state of around 200 basis points per day for crude oil, and of around 150 basis points per day for the S&P 500. Our result suggests that ORB strategy traders can be profitable, even in the long-run, but that the success in day trading to a large extent depend on the volatility of the underlying asset.Paper [III] performs empirical analysis on short-term and long-term Commodity Trading Advisor (CTA) strategies regarding their exposures to unanticipated risk shocks. Previous research documents that CTA strategies in general offer diversification opportunities during equity market crisis situations when evaluated as a group, but do not separate between short-term and long-term CTA strategies. When separating between short-term and long-term CTA strategies, this paper finds that only short-term CTA strategies provide a significant, and consistent, exposure to unanticipated risk shocks while long-term CTA strategies do not. For the purpose of diversifying a portfolio during equity market crisis situations, our result suggests that an investor should allocate to short-term CTA strategies rather than to long-term CTA strategies.Paper [IV] posits that it is possible to obtain an optimal leverage factor for financial instruments equipped with embedded leverage. By applying the Kelly criterion for optimal leverage, we show that there exists a uniquely optimal level of leverage for maximizing the long-run profit of embedded leverage instruments. The implication of an existing unique optimum is that a smaller leverage factor than optimal leads to a lower long-term profit than is feasible, but also that a larger leverage factor leads to a lower long-term profit than is feasible. Our empirical analysis shows how an optimal level of embedded leverage can increase the profitability of Exchange Traded Products.Paper [V] systematically analyses the effect of leverage on long-run profit when trading the Opening Range Breakout (ORB) day trading strategy. This paper clarifies the relation to two optimal leverage rules proposed for maximizing trading profit; the Kelly criterion and the Optimal fraction criterion. Our empirical analysis shows how leverage can increase day trading profit in-sample and out-of-sample when applied to a long time series of DAX 30 index futures contracts.
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| 23. |
- Mannberg, Andréa, 1977-, et al.
(författare)
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Conflicting identities and social pressure : Effects on the long-run evolution of female labor supply
- 2010
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Over the last half-century female employment rates have increased significantly in many countries. This change has partly been attributed to a change in gender norms. The purpose of this paper is to present a dynamic model within which the evolution of female labor supply can be analyzed. Drawing on psychological literature, we let individuals define themselves in terms of different social identities, each of which prescribes a certain type of behavior. These prescriptions may imply conflicting incentives which provide agents with a motive to continuously revise the importance they attach to a given identity. Applying this approach within the context of a dynamic model of labor supply, we are able to make some novel predictions about what may cause labor supply to change over time. Our results suggest that the fear of becoming an outsider in society may have prevented a complete transition of women from housewives to breadwinners. In addition, we show that the discrepancy between personal and social norms may have interesting implications for labor supply: an increase in the hours of work prescribed by a working norm need not necessarily lead to more hours of work. Finally, our analysis shows that not recognizing that the weights attached to different social identities are endogenous may imply that the long-run effects on labor supply of a higher wage may be underestimated.
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| 24. |
- Mannberg, Andrea, et al.
(författare)
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Social identity and risky leisure activities : implications for welfare and policy
- 2022
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Ingår i: Social Choice and Welfare. - : Springer. - 0176-1714 .- 1432-217X. ; 59:2, s. 251-285
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Tidskriftsartikel (refereegranskat)abstract
- In this paper, we build on theories in psychology and economics and link positional preferences to private agents' identification with a social group, and the social norms present in that group. The purpose of our paper is to analyze behavioral, welfare, and policy implications of a link between private agents' social identity and a risky leisure activity. Our results suggest that, when the outcome of the positional activity is uncertain, the over-consumption result that is associated with positional preferences in a deterministic framework need not apply to all agents in a social equilibrium. The reason is that agents have incentives to act with caution in order to avoid failure when the outcome of the socially valued activity is uncertain. We also show how policy can be used to improve the welfare within a social group where the risky leisure activity is positional.
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| 25. |
- Martinez, Diego, et al.
(författare)
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Can Labor Market Imperfections Cause Overprovision of Public Inputs?
- 2013
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Ingår i: Journal of Economic Research. - : Journal of Economic Research. ; 18:2, s. 135-146
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Tidskriftsartikel (refereegranskat)abstract
- This paper concerns provision of productive public inputs in the presence of unemployment. It is shown that if the government is able to implement optimal taxes on labor income and profit income, respectively, then the public input will be underprovided. On the other hand, if the government is not able to implement an optimal tax on labor income, e.g. because the labor income tax is determined at another level in the public sector (e.g. the municipal or the state level), then overprovision may occur. We derive an equation which links overprovision of the public input to (i) the employment rate and to (ii) the deviation of the actual labor income tax from the optimal level.
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| 26. |
- Martinez, Diego, et al.
(författare)
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Vertical externalities with lump-sum taxes : how much difference does unemployment make?
- 2014
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Ingår i: European Journal of Government and Economics. - : Universidade da Coruna. - 2254-7088. ; 3:1, s. 75-87
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Tidskriftsartikel (refereegranskat)abstract
- This paper analyses how the existence of unemployment affects the conventional approach to vertical externalities. We discuss the optimality rule for the provision of public inputs both in a unitary and in a federal state. Our findings indicate that decentralising spending responsability on public inputs in the presence of unemployment allows output to be closer to the first best level. Moreover, we describe the inability of the federal government, behaving as a Stackelberg leader, to replicate the unitary outcome, unless there are new policy instruments at government's disposal.
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| 27. |
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| 28. |
- Sjögren, Tomas, 1967-
(författare)
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Labor Income Taxes in an Economic Federation with Proportional Membership Fees
- 2019
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Ingår i: International Tax and Public Finance. - : Springer. - 0927-5940 .- 1573-6970. ; 26:5, s. 1137-1165
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Tidskriftsartikel (refereegranskat)abstract
- A significant part of the revenue in the EU budget is raised via a GNI-based resource. The purpose of this paper is to use a stylized model of an economic federation to analyze how this way of raising funds to the central authority affects the labor income taxes implemented by the lower-level governments. This question is analyzed both when the federal fee is proportional to GNI and proportional to GDP. One key result is that if the government in a lower-level jurisdiction acts as a Nash follower vis-a-vis the other governments in the public sector, then there is an incentive to implement a higher tax on labor. Another is that if the lower-level government is able to exercise decentralized leadership vis-à-vis a federal government which is concerned with redistribution, then the incentive structure underlying the taxation of labor is independent of how the federal government collects its revenue.
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| 29. |
- Sjögren, Tomas, 1967-
(författare)
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Optimal taxation and environmental policy in a decentralized economic federation with environmental and labor market externalities
- 2010
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Ingår i: Public Finance and Management. - 1523-9721. ; 10:2, s. 284-330
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Tidskriftsartikel (refereegranskat)abstract
- This paper concerns optimal taxation and environmental policy in the presence of transboundary environmental damage and labor market distortions, where the latter gives rise to wage bargaining externalities between countries. I consider a decentralized economic federation where the federal government chooses emission targets to be implemented by the national governments. The results show that the labor market externality will influence the target levels for emissions chosen by the central government. I then proceed to characterize the optimal tax policy at the national level. The decentralized federation structure produces incentives for the national governments to use the tax policy to influence the policies chosen by the federal level. It is shown how these objectives interact with the additional objective to minimize the distortion on the national labor market.
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