Tax Aversion, Optimal Tax Rates, and Indexation

Taking account of the costs of tax evasion and avoidance activity together with the government's costs of tax enforcement it is shown that the optimal point on a stylized Laffer curve is located on the positively sloped region, not at the maximum point of the, curve. The analysis eschews the usual supply-side-type rationale for the Laffer curve and shows that such a curve can arise solely as a consequence of the optimizing tax aversion activity of a utility maximizing economic agent. The analysis further implies that indexation to inflation may be warranted by considerations of economic efficiency.

Tax Aversion, Deficits and the Tax Rate-Tax Revenue Relationship

This paper offers a possible explanation for the existence of continual government budget deficits such as experienced in a number of industrialized countries in recent years. Based on the assumption that higher tax rates cause more intensive tax-aversion behavior (tax avoidance and tax evasion), together with the assumption that the time horizon relevant for political decision makers is shorter than that required for complete private sector response to tax rate change, our analysis suggests why there seems to be an inherent bias toward budget deficits. Because of tax aversion an inverse relationship between tax rates and tax revenues may exist at low levels of the tax rate. Consequently determined attempts to eliminate or reduce deficits can become self-defeating, almost certainly so when there is a structural deficit. Our analysis suggests that if an economy is on the downward sloping portion of a stylized Laffer curve political expedience, uncertainty about the shape of the curve, and a common wisdom that tax rate increases reduce deficits can all conspire to keep the budget trapped in deficit. Finally, in the presence of inflation deficit growth may be less if there is indexation of income tax rates to inflation, contrary to conventional wisdom.

On the Optimality of Reserve Requirements

An implicit rationale for a bank reserve requirement is that a central monetary authority is in a unique position (as "social planner) to impose a "socially superior" outcome to that yielded by a free banking system. We illustrate how this can be true in the context of a simple economy modeled to mimic certain basic characteristics of a monetary economy with banks and agents who trade with one another. Banks exist in our model because by pooling liquidation risks they provide liquidity otherwise unavailable to depositors, which, in turn, provides the incentive - for using deposit claims as the medium of exchange.

Demand Variability, Supply Shocks and the Output-Inflation Tradeoff

This paper examines the shift in the relation between the inflation rate and the rate of growth of real output which has occurred in the United States over the past three decades, and attempts to assess the relative importance of three possible lines of explanation: a) the new classical view of the output-inflation tradeoff, initially specified by Lucas;b) the effect of supply-side shocks, such as energy prices; c) the effect of inflation variability on the natural rate of real output, as hypothesized by Milton Friedman. The paper concludes that b) and c) seem to have played a significant role in the observed shift from a positive to a negative correlation between the rate of inflation and the rate of real output growth,but that a) did not.

Real Business Cycles and the Lucas Paradigm

When the Lucas paradigm is generalized to include real effects, the effects of real factors and monetary factors on the business cycle are always interrelated. Furthermore, in such models monetary factors can affect the long-run behavior or real output, contrary to the commonly held view that they can't. Real business cycle models and Lucas-type models are different paradigms not in the sense of real versus monetary, but in the interrelation- ships between real and monetary factors intrinsic to the Lucas paradigm as contrasted to the dichotomy between real and monetary factors implied by the real business cycle literature.

Lysine metabolism and slaframine biogenesis in Rhizoctonia Leguminicol

Typescript.Thesis (B.S.)--University of Illinois at Urbana-Champaign, 1968.Includes bibliographical references (leaves 39-41)

Mitos nos sonhos: uma contribuição Amazônica à teoria psicanalítica do processo primário

Antropologia e psicanálise são duas disciplinas ao mesmo tempo altamente relacionáveis uma à outra, mas também difíceis de se relacionarem (cf. Pulman, 1384). Ambas tratam da mente humana e ambas destacam o entendimento do pensamento do outro como 0 meio privilegiado de entender seus padrões de vida e de comportamento. A antropologia visa ao estudo dos modos de entender e pensar culturalmente diferentes dos nossos, tornando-os compreensíveis. A psicanálise tem explorado em profundidade a mente do homem ocidental, revelando aspectos inesperados ”” e inconscientes ”” da vida emocional e tornando compreensíveis sintomas neuróticos e sonhos das pessoas normais. Mas, para o entendimento do pensar humano, as duas visam a perspectivas bastante diferentes, às vezes em plena oposição, provindo de pressuposições diferentes sobre a natureza humana

A educação entre os Parintintim: temos muito a aprender com eles

Doutor em Antropologia e professor da Universidade de Illinois em Chicago,Waud H. Kracke colabora com a revista Comunicação & Educação com um relato sobre a educação entre os Parintintim. De caráter mais etnográfico do que de ensaio teórico, neste trabalho o autor coloca importantes questões sobre a educação entre os povos indígenas brasileiros e o que temos a aprender com eles. Reflete sobre a importância do olhar no aprendizadoe sobre os processos de transmissão oral. Os Parintintim não separam ensino prático do teórico e o conteúdo daquilo que aprendem está intimamente relacionado com os valores a partir dos quais se organiza a sua sociedade. Entre eles, a colaboração é mais valorizada do que a competitividade

Book review: Guide to L ATEX, 4 th Edition

I believe I should point out at the beginning that my wife has a t-shirt which reads “My next husband will be normal”. However the problem is deeper than that. I seem to be attracted to groups where the whole membership is not normal, for example, the local Linux users group. Reading the Kopka and Daly book I have come to the conclusion that one should not consider TEX users to be normal either. And I think it is important to keep this in mind. This whole issue arose when I started by looking at the cover and introductory material to see what the authors ’ objective was. I found “how to begin using LATEX ” right on the back cover. Against this backdrop I began to read. By chapter 2 I began t

Battle of Malvern Hill -- Lee\u27s attack

The image depicts the Battle of Malvern Hill, which took place during the American Civil War on July 1, 1862. General Robert E. Lee stood command of the Confederate Army of Northern Virginia, while General George B. McClellan commanded the Union Army of Potomac. The two armies collided near Richmond, Virginia. The battle was a part of the Peninsula Campaign\u27s Seven Days Battles. The image is printed in black ink on off-white paper. It appears to have been removed from a bound volume.https://scholarsjunction.msstate.edu/fvw-prints/1184/thumbnail.jp