Title:On the Signaling and Feedback Effects of Umbrella Branding
Author(s):THAL, JeanineDate:2007Type of Publication:Working PaperSeries/Report no.:EUI MWPAbstract:I consider an adverse selection model of product quality to analyze a firm's incentives to sell different products under an umbrella brand. My main result is that umbrella branding can signal positive quality correlation ...
Title:Optimal Debt Bias in Corporate Income Taxation
Author(s):SIMON, JennyDate:2012Type of Publication:Working PaperSeries/Report no.:EUI MWPAbstract:I present a rationale for a government to discriminate between debt and equity financing when taxing corporate income. For risk-averse entrepreneurs, equity generates more surplus than debt, because it provides financing ...
Title:Optimal Monetary Policy and the Sources of Local-Currency Price Stability
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2007Type of Publication:Working PaperSeries/Report no.:EUI RSCASAbstract:We analyze the policy trade-offs generated by local currency price stability of imports in economies where upstream producers strategically interact with downstream firms selling the final goods to consumers. We study the ...
Title:Optimal Monetary Policy in Open Economies
Author(s):CORSETTI, Giancarlo; DEDOLA, Luca; LEDUC, SylvainDate:2010Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This chapter studies optimal monetary stabilization policy in interdependent open economies, by proposing a unified analytical framework systematizing the existing literature. In the model, the combination of complete ...
Title:Optimal Pre-Announced Tax Reform Revisited
Author(s):TRABANDT, MathiasDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:Domeij and Klein (2005) have shown that the welfare gains of an optimal capital and labor income tax reform decline the longer the reform is pre-announced before its implementation. In other words, pre-announcement is ...
Title:Optimal Taxation and Constrained Inefficiency in an Infinite-Horizon Economy with Incomplete Markets
Author(s):GOTTARDI, Piero; KAJII, Atsushi; NAKAJIMA, TomoyukiDate:2011-01-01Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We study the dynamic Ramsey problem of finding optimal public debt and linear taxes on capital and labor income within a tractable infinite horizon model with incomplete markets. With zero public expenditure and debt, it ...