Suchergebnisse

We apply a three-tier hierarchical model of regulation, developed along the lines of Laffont and Tirole (1993), to an adverse selection problem in the corporate bond market. The bank brings the bonds to the market and informs the potential buyers about the bond risks; a unique benevolent public authority aims at maximising investors' welfare. The main goal is to investigate whether this unique authority is able to fully inform the market on a firm's true credit worthiness when banks, in order to recover doubtful credits, favour the placement of bonds issued by levered firms by concealing their true risk. By establishing the necessary conditions that allow optimal sanctions to produce the first best equilibrium, we show that the core problem of adverse selection in the corporate bond market does not lie so much in the benevolence of the delegated monitoring system, but rather in the possibility of affecting and sanctioning a firm's behavior.

We investigate the effect of fiscal policy on equilibrium determinacy in a New Keynesian economy with rule-of-thumb (liquidity-constrained) consumers and capital accumulation by focusing on the inter-action between monetary policy and taxation under the assumption of balanced budget. Our main finding is that taxation of firms' monopoly rents enforce the Taylor principle - the prescription that the nominal interest rate must respond more than one for a unitary change in inflation - as a criterion for equilibrium determinacy. Adapted from the source document.

This paper analyses the incidence of the Value Added Tax (VAT) on Italian households income. To address this question, we developed a non-behavioural microsimulation model, the Value Added Tax Simulation Model (VATSIM-DF II). The goals of VATSIM-DF (II) are to estimate actual and expected VAT revenues, assess the VAT incidence on households disposable income, and simulate the distributional effects of changes in fiscal policies in Italy. Compared to existing models, the main achievements of this study are: (i) the creation of a unique original dataset, which includes tax register data; (ii) the implementation of a matching procedure, based on Tax Register data, which outperforms other data fusion strategies used in the existing literature. These innovations allow us to create a reliable and unique dataset to simulate changes in VAT and to produce results consistent with the most updated macroeconomic data. We tested our model, at current VAT legislation, and we show the VAT burden on Italian households confirming the regressivity of VAT. Finally, we analyse the effect of a revenue neutral reform, with two VAT rates, which applies the reduced VAT rate also to female and babies sanitary products.