Good jobs, bad jobs and redistribution

We analyse the question of optimal taxation in a dual economy, when the government is concerned about the distribution of labour income. Income inequality is caused by the presence of sunk capital investments, which creates a 'good jobs' sector due to the capture of quasi-rents by trade unions. We find that whether the government should subsidise or tax investments is crucially dependent on union bargaining strength. If unions are weak, the optimal tax policy implies a combination of investment taxes and progressive income taxation. On the other hand, if unions are strong, we find that the best option for the government is to use investment subsidies in combination with either progressive or proportional taxation, the latter being the optimal policy if the government is not too concerned about inequality and if the cost of income taxation is sufficiently high.

Dynamical processes in the Arctic atmosphere

This book presents current knowledge on chemistry and physics of Arctic atmosphere. Special attention is given to studies of the Arctic haze phenomenon, Arctic tropospheric clouds, Arctic fog, polar stratospheric and mesospheric clouds, atmospheric dynamics, thermodynamics and radiative transfer as related to the polar environment. The atmosphere-cryosphere feedbacks and atmospheric remote sensing techniques are presented in detail. The problems of climate change in the Arctic are also addressed