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This paper studies how household heterogeneity affects the level and cyclical behavior of the optimal carbon tax in a real economy. We demonstrate that an equity-efficiency trade-off arises due to income inequality and heterogeneity in the…

Theoretical Economics · Economics 2025-03-04 Cristiano Cantore , Giovanni Di Bartolomeo , Francesco Saverio Gaudio

The optimal taxation of assets requires attention to two concerns: 1) the elasticity of the supply of assets and 2) the impact of taxing assets on distributional objectives. The most efficient way to attend to these two concerns is to tax…

General Economics · Economics 2021-06-08 Nicolaus Tideman , Thomas Mecherikunnel

We introduce a highly stylized, yet non trivial model of the economy, with a public and private sector coupled through a wealth tax and a redistribution policy. The model can be fully solved analytically, and allows one to address the…

Economics · Quantitative Finance 2015-12-09 Jean-Philippe Bouchaud

This article concerns the optimal choice of flat taxes on labor and capital income, and on consumption, in a tractable economic model in which agents are subject to idiosyncratic investment risk. We identify the tax rates which maximize…

General Economics · Economics 2025-08-19 Brendan K. Beare , Alexis Akira Toda

In this paper investigations by the same authors on environmental issues concerning the control of the pollution produced by human activities have been extended to include costs related to environmental interventions. The proposed model…

Numerical Analysis · Mathematics 2025-11-03 Sebastian Anita , Vincenzo Capasso , Simone Scacchi

This paper analyzes whether a minimum wage should be used for redistribution on top of taxes and transfers. I characterize optimal redistribution for a government with three policy instruments -- labor income taxes and transfers, corporate…

General Economics · Economics 2022-12-08 Damián Vergara

How should taxes on externality-generating activities be adjusted if they are regressive? In our model, the government raises revenue using distortionary income and commodity taxes. If more or less productive people have identical tastes…

General Economics · Economics 2025-12-08 Ashley C. Craig , Thomas Lloyd , Dylan T. Moore

In the so-called ``fair'' models of peer-to-peer wealth exchanges, economic inequality tends to reach its maximum value asymptotically. This global trend is evident as the richest continuously accumulate a larger share of wealth at the…

Physics and Society · Physics 2023-08-22 Thiago Dias , Sebastián Gonçalves

We propose an evolutionary model to study the transition toward green technology under the influence of innovation. Clean and dirty technologies are selected according to their profitability under an environmental tax, which depends on the…

Physics and Society · Physics 2025-10-01 Fausto Cavalli , Alessandra Mainini , Enrico Moretto , Ahmad Naimzada

We propose two general equilibrium models, quota equilibrium and emission tax equilibrium. The government specifies quotas or taxes on emissions, then refrains from further action. Quota equilibrium exists; the allocation of emission…

Theoretical Economics · Economics 2023-10-06 Robert M. Anderson , Haosui Duanmu

In this work we use an inelastic scattering process of particles to propose a model able to reproduce the salient features of the wealth distribution in an economy by including taxes to each trading process and redistributing that collected…

General Finance · Quantitative Finance 2008-12-02 Sebastian D. Guala

In this paper, we consider the problem of pollution control in a system that undergoes regular regime shifts. We first show that the optimal policy of pollution abatement is periodic as well, and is described by the unique hybrid limit…

Systems and Control · Electrical Eng. & Systems 2023-05-30 Dmitry Gromov , Tadashi Shigoka , Anton Bondarev

The Nobel-price winning Mirrlees' theory of optimal taxation inspired a long sequence of research on its refinement and enhancement. However, an issue of concern has been always the fact that, as was shown in many publications, the optimal…

General Economics · Economics 2024-08-28 Vassili N. Kolokoltsov , Egor M. Dranov , Denis E. Piskun

This paper explores the optimal policy for using an allocated carbon emission budget over time with the objective to maximize profit, by explicitly taking into account present-biased preferences of decision-makers, accounting for…

Mathematical Finance · Quantitative Finance 2025-11-03 Hansjörg Albrecher , Jinxia Zhu

Wealth taxes are a frequently proposed policy within the post-growth literature, but evaluations of their alignment with post-growth goals, and empirical estimates of their potential effects, are lacking. We contribute to this literature by…

General Economics · Economics 2026-03-19 Thomas Webb , Arthur Apostel , Milena Büchs , Richard Bärnthaler

This study constructs a novel analytical general equilibrium model to compare environmental policies in a setting where oligopolistic energy firms engage in third-degree price discrimination across residential consumers and industrial…

General Economics · Economics 2025-01-07 Tengjiao Chen , Daniel H. Karney

This paper proposes and studies an optimal dividend problem in which a two-state regime-switching environment affects the dynamics of the company's cash surplus and, as a novel feature, also the bankruptcy level. The aim is to maximize the…

Optimization and Control · Mathematics 2022-06-10 Giorgio Ferrari , Patrick Schuhmann , Shihao Zhu

This paper studies the optimal extraction policy of an oil field as well as the efficient taxation of the revenues generated. Taking into account the fact that the oil price in worldwide commodity markets fluctuates randomly following…

Optimization and Control · Mathematics 2017-04-18 Moustapha Pemy

This paper studies a model for the optimal control (by a centralized economic agent which we call the planner) of pollution diffusion over time and space. The controls are the investments in production and depollution and the goal is to…

Theoretical Economics · Economics 2026-01-09 Fausto Gozzi , Marta Leocata , Giulia Pucci

In this paper, we consider the optimal dividend problem for a company. We describe the surplus process of the company by a diffusion model with regime switching. The aim of the company is to choose a dividend policy to maximize the expected…

Mathematical Finance · Quantitative Finance 2014-07-01 Xiaoxiao Zheng , Xin Zhang
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