Browsing by Author "Kanbur, Ravi"

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  • Optimal taxation and public provision for poverty reduction
    (2018-02-01) Kanbur, Ravi; Paukkeri, Tuuli; Pirttilä, Jukka; Tuomala, Matti
     A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
    The existing literature on optimal taxation typically assumes there exists a capacity to implement complex tax schemes, which is not necessarily the case for many developing countries. We examine the determinants of optimal redistributive policies in the context of a developing country that can only implement linear tax policies due to administrative reasons. Further, the reduction of poverty is typically the expressed goal of such countries, and this feature is also taken into account in our model. We derive the optimality conditions for linear income taxation, commodity taxation, and public provision of private and public goods for the poverty minimization case and compare the results to those derived under a general welfarist objective function. We also study the implications of informality on optimal redistributive policies for such countries. The exercise reveals non-trivial differences in optimal tax rules under the different assumptions.
  • Promoting education under distortionary taxation: equality of opportunity versus welfarism
    (2022-06) Haaparanta, Pertti; Kanbur, Ravi; Paukkeri, Tuuli; Pirttilä, Jukka; Tuomala, Matti
     A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
    A common claim in the policy discourse is that a government wishing to achieve equality of opportunity should use public provision of education for equalisation of opportunities rather than income taxation, which only equalizes incomes. We develop a framework in which the tax and education provision rules in the welfarist and non-welfarist/equality of opportunity cases can be transparently compared. We show that in addition to education policies, progressive taxation also plays a role in achieving equality of opportunity, and illustrate how its use may differ under the two objectives. We also show how the provision of public education depends on how private education choices respond, potentially differentially by higher- and lower-income families.