Migration and income transfers in the presence of labor quality externalities

In this paper, a worker's productivity is assumed to depend on his own quality and on the average quality of other workers in the same country. The external effects associated with worker quality give rise to increasing returns to average worker quality. As a result, free migration generally reduces world output. Within each country, social benefits that induce low quality workers to leave the labor force can increase national income. Moreover, the operation of such a benefit scheme financed by a proportional income tax can increase everybody's net-of-tax income. The political economy of a system of transfers within a country is analyzed. In particular, the level of transfers is assumed to be determined by popular vote. In this setting, small migration flows can bring about large changes in transfer levels and in labor participation rates. The anticipation of migration generally reduces the level of transfers to the unemployed.Labour Market;Migration;Productivity;National Income;Quality;labour economics

Real exchange rate misalignment and redistribution

Exchange Rate;Export;Income Distribution

Time preference and international tax competition

Taxation;Capital Movements;Preferences;Models

The Taxation Implicit in Two-Tiered Exchange Rate Systems

A two-tiered exchange rate system can be interpreted as a set of separate taxes on money and other financial assets.If the official two-tiered exchange rate system coexists with a black market for foreign exchange, then there is an implicit taxation of international goods trade as well.This paper presents some evidence on the tax rates and tax revenues implicit in the exchange rate systems of the Bahamas (from 1978 to 1995), the Dominican Republic (from 1970 to 1984) and South Africa (from 1973 to 1995).Only the Bahamas appears to have received positive tax revenues from the implicit taxation of international capital flows, while only South Africa is estimated to have obtained positive tax revenues from the implicit taxation of international goods trade.taxation;exchange rate

Are there synergies between World Bank partial credit guarantees and private lending?

Since 1994, the World Bank has provided partial credit guarantees to private financiers of several large infrastructure projects in developing countries. A major objective of the partial guarantee program is to leverage Bank resources so as to provide developing countries with better private credit terms. A real test of the efficacy of World Bank partial credit guarantees is whether they also lower the interest rate and lengthen the effective maturity of the part of the credit not covered by the World Bank guarantee. On the basis of deals closed so far, the author finds no evidence that guarantees have affected nonguaranteed interest rates favorably, while the duration of the nonguaranteed credits remains relatively short.International Terrorism&Counterterrorism,Payment Systems&Infrastructure,Banks&Banking Reform,Economic Theory&Research,Strategic Debt Management,Financial Crisis Management&Restructuring,Banks&Banking Reform,Economic Theory&Research,Strategic Debt Management,Insurance&Risk Mitigation

Unemployment Benefits and Redistributive Taxes in the Presence of Labor Quality Externalities

In this paper, a worker s productivity is assumed to depend on his own quality and on the average quality of other employed workers.In this setting, unemployment benefits that induce low quality workers to leave the labor force have important efficiency as well as equity implications.In addition to unemployment benefits, the authorities can use a proportional income tax and lump sum transfers.The desirability of tax and transfer policy is considered from the perspectives of a utilitarian social planner, and of an electorate consisting of employed and unemployed workers.Employed workers may be in favor of unemployment benefits, even though they do not benefit directly.If unemployment benefits are financed by lump sum taxes, then relatively high unem-ployment benefits may be favored by a coalition of the unemployed and of high quality employed workers.unemployment;quality;income tax;income distribution;labour models

The welfare effects of individual retirement accounts

Taxation;Pensions;Welfare

The Dual Role of Money and Optimal Financial Taxes

This paper reconsiders the optimal taxation of money and other financial assets.The optimal tax formulae reflect that money provides liquidity services and is a saving vehicle.In fact, it is useful to reformulate the optimal tax problem to allow for separate taxes on the liquidity and saving functions of money.This reformulation allows one to better understand the original optimal tax problem.The possible optimality of a subsidy on borrowing, for instance, can be explained if it is noted that the theoretically correct measure of savings reflects that money as well as nonmonetary assets can serve as saving vehicles.money;savings;taxation

National tax policies towards product-innovating multinational enterprises

Multinational Companies;Corporate Tax