Publications

WP 2016-02. Most of the literature on rent-seeking and the size of government expenditure has focused on the mechanisms through which policy-makers gather the necessary majorities to justify and expand…

Jittery January Markets – Does the ECB have Contingency Plans? The ECB must be aware that investors’ confidence in stock markets, particularly bank shares, dropped in January. If contingency plans…

How is NHS coping with winter? Winter is historically, and not surprisingly, a very challenging time for the UK National Health System, NHS, due to lower temperatures and the spread…

WP 2016-01. The traditional literature on tax evasion frames taxpayers’ choices in terms of rather basic cost-benefit analyses involving the expected monetary return to tax evasion. Briefly put, individuals take…

Net neutrality: what is the debate about? The Internet has probably been the fastest developing industry of the last two decades, leading it to become a necessary instrument in our…

Central Banking – The Bank for International Settlements again Questions Prevailing Central Bank Policies. The BIS has recently published two reports. In one, appearing to embrace the Austrian School of…

The UK labour market at the beginning of 2016 is in a rather good shape. The rate of unemployment has decreased steadily in the last two years and is now…

The Nobel-Laureate Douglass North passed away at the end of November. Though he didn’t specialise in fiscal questions, his analysis of institutions in early modern Europe reveals that actual fiscal choices about how to finance an army help to determine the fortunes and falls of European powers. The lesson for today is clear – fiscal size may be important, but it is equally important to consider how it is raised.

Switzerland may be known for low taxes, but that does not prevent it from redistributing them; richer regions subsidise the poorer ones. Now at least one paying canton is starting to protest against the arrangement. There really is a big difference between how much taxpayers in different cantons pay for (or receive from) others. But somewhat surprisingly, there is hardly any “freeriding”: subsidised cantons do not use the subsidy to lower their own tax revenues. “Race to the bottom” that most EU politicians like to fear is therefore little to be feared.

The UK government has been watching Jamie Oliver’s TV shows and now wants to implement his plans for a new tax on sugar. The Commons‘ Health Committee has reported its overwhelming support for the idea at the end of November. Other than arguments that such taxes are “good per se“ because they will decrease obesity, most serious justifications invoke the idea that the tax would be a just way of raising extra money for the health service tasked with treating the consequences of obesity. Unfortunately, neither goal would likely be achieved through a sugar tax.