risk taking and taxation an alternative perspective abstract the analysis of risk taking and taxation has almost invariably been in a portfolio choice framework this paper presents the alternative perspective of an occupational choice framework where risk taking involves the additional element of discrete choice between safe and risky activities it is shown that the specification of equilibrium must of necessity have a general equilibrium character in this setting the paper develops rules for government intervention in the market equilibrium and analyses the effects of taxation on risk taking

optimal bidding scheduling and deployment of battery systems in california day ahead energy market an optimal supply and demand bidding scheduling and deployment design framework is proposed for battery systems it takes into account various design factors such as the day ahead and real time market prices and their statistical dependency as well as the location size efficiency lifetime and charge and discharge rates of the batteries utilizing second life used batteries is also considered without loss of generality our focus is on the california independent system operator iso energy market and its two available bidding options namely self schedule bidding and economic bidding while the formulated stochastic optimization problems are originally nonlinear and difficult to solve we propose a methodology to decompose them into inner and outer subproblems accordingly we find the global optimal solutions within a short amount of computational time all case studies in this paper are based on real market data

a general equilibrium theory of firm formation based on individual unobservable skills abstract a model of firm formation is built along the lines of knight 1921 contrary to kihlstrom and laffont 1979 the individuals are risk neutral but have different productive efficiencies we suppose that the individuals who are the more efficient workers are also the more efficient entrepreneurs each agent chooses the activity which gives her the larger expected income in equilibrium the more efficient people become entrepreneurs and under a special kind of increasing returns to scale assumption this is also what is implied by efficiency considerations however we show that the equilibrium number of entrepreneurs is always larger than the pareto optimal one a simple uniform lump sum tax on firms together with redistribution of the tax revenue to workers is nevertheless sufficient to restore efficiency

revealing rival marginal offer prices via inverse optimization we consider a strategic producer that trades its energy in a multi period network constrained electricity pool and for strategic reasons is interested in identifying its rival producers offer prices considering industry practice we assume that the strategic producer has knowledge of the daily market outcomes i e energy quantities sold bought and resulting locational marginal prices lmps for each time period and all nodes of the network using this information we formulate an inverse optimization problem that allows estimating the rival producers offer prices that have been marginal at any of the time periods under study such problem is well behaved effectively identifies rival offer prices and can be efficiently solved the effectiveness of the proposed technique is illustrated through a simple example and a realistic case study

why market rules matter optimizing pumped hydroelectric storage when compensation rules differ abstract policies markets and technologies interact to create the modern electrical system integrating large amounts of electricity generated by variable renewable resources such as from wind and sunlight into electricity systems may require energy storage technologies to synchronize electricity production with electricity demand electricity markets compensate the performance of these energy storage technologies for the services they provide and these markets are often operated by regional independent system operators isos that specify the market rules for this compensation to examine how different iso rules can affect the operation and profitability an energy storage technology we develop a dynamic programming model of pumped hydroelectric storage phes facility operation under the market rules from the midcontinent iso and iso new england we present how differences in rules between these isos produced different operational strategies and profits and how important they are for phes profitability

everyone may benefit from subsidising entry to risky occupations this paper shows that in the presence of costly state verification directly or indirectly subsidising entry to risky occupations may benefit everyone the result holds even in the presence of private insurance indeed it may be desirable to prohibit private insurance in favour of subsidies to hazardous activities these findings do not depend on the government having an advantage over the private sector in observing outcomes the explanation is that through its influence on equilibrium price feasible fiscal policy can shift the return distribution so as to create collective insurance more cheaply than is possible through private contracting with its requirement of costly auditing amongst applications is a case for a loss making state bank offering high interest rate loans

small industry in developing countries a discussion of issues abstract this paper first examines the changing size distribution of industry in developing countries by region and over time and by reference to firm level surveys it discusses the underlying causes the importance of markets generated by the growth of agriculture and rural incomes for the regional development of industry both small and large scale is noted second it discusses the entrepreneurship issue arguing that while small and largefirms alike are highly responsive to the growth of markets the measured entrepreneurial response is neither as full nor as efficient as is desirable the third and last part discusses small industry programmes and their relation to development policy financing and extension programmes are considered in detail and there is a discussion of the risks involved some parallels with agricultural credit are discussed in particular the default problem and the problems associated with concessionary finance it is also argued that small industries and by implication the programmes intended to support them would stand to benefit from more efficient and also more labour demanding policies towards agriculture and industry

optimal taxation and firm formation abstract this paper analyzes non linear optimal taxation under asymmetric information in a general equilibrium model with endogenous firm formation it first shows under a weak separability assumption on technologies that output and input taxes are not necessary if profits are optimally taxed it then examines the progressivity or lack of it of the optimal profit tax and describes the corresponding effects on the structure of the production sector relative to the first best solution finally the paper investigates conditions under which the provision of public goods can be decentralized

inequality and inefficiency in a model of occupational choice with asymmetric information abstract this paper presents a model of an economy with two occupations in which one occupation has access to some private information it is shown that even if all individuals are identical equality of ability and there is free entry into occupations equality of opportunity this may not be sufficient to equalize the rewards to occupations in equilibrium the only equilibrium may be one where one occupation earns more than the other and entry to the lucrative occupation is rationed we extend the analysis to the case of heterogenous individuals where we show that under reasonable assumptions asymmetric information worsens the distribution of income we also look at inefficiencies and show that with asymmetric information it may be the least productive individuals who become managers

asymmetric information occupational choice and government policy a model of credit markets under asymmetric information is proposed in which individuals differ in abilities that are valued in both entrepreneurship and paid employment unlike the heterogeneous ability model of de meza and webb 1987 over investment is not inevitable under investment and credit rationing can occur instead this result depends on the novel possibility of there being greater separation of types in paid employment than in entrepreneurship the model allows individuals to be monitored in both occupations and permits derivation of the conditions under which the novel possibility holds the role of corrective government policies is also discussed

taxation and entrepreneurship in a welfare state does tax policy affect the rate of self employment in a modern welfare state this question is analyzed empirically based on swedish data for the entire postwar period available tax data indicate that payroll taxes have had a negative influence on the unincorporated rate of self employment though the effect is modest no effects from regular labor income taxation or capital gains taxation are found the paper improves upon earlier studies in that it tries to separate the effects of different taxes and uses cointegration techniques a further extension is that it studies a scandinavian high tax welfare state earlier time series studies analyzing self employment and taxation have with few exceptions been based on data from countries with relatively low tax levels and less comprehensive welfare systems notably the usa and the uk

optimal linear income taxation in models with occupational choice the purpose of this paper is to investigate the implication of occupational choice for linear income taxation occupational choice is restricted to entrepreneurship versus wage earning different settings are considered concerning the introduction of uncertainty and that of individuals heterogeneity in ability or risk aversion for each setting an optimal tax formula is derived and shown to be made up of various components pertaining to insurance redistribution and efficiency

taxation of mobile factors as insurance under uncertainty this paper considers the effects of the taxation of mobile factors i e capital under uncertainty the wages earned by residents of a jurisdiction are uncertain due to random shocks since the uncertain wages in a jurisdiction depend on the amount of mobile capital employed in the jurisdiction and since taxation alters the quantity of capital employed taxation affects the riskiness of uncertain wages in particular the taxation of capital moderates the fluctuation of uncertain wages thereby providing insurance for this reason jurisdictions use distortionary capital taxation even if lump sum taxation is available in addition this insurance effect counteracts the tendency toward too low tax rates on capital arising from tax competition and possibly improves the efficiency of tax competition

application of information gap decision theory to risk constrained self scheduling of gencos in a competitive electricity market a generation company genco optimizes its operation schedules referred to as self scheduling in order to maximize its profit however various sources of uncertainty such as market price fluctuations or forced outage of generating units may impact the genco s profit in this paper a non probabilistic information gap model is proposed to model the uncertainties in short term scheduling of a genco the self scheduling problem is formulated for risk neutral risk averse and risk seeker gencos robustness of the decisions against low market prices are evaluated using a robustness model furthermore windfall higher profit due to unpredicted higher market prices is modeled using an opportunity function the proposed models are applied to a 54 unit thermal genco

modeling productive entrepreneurship in developing countries this paper develops a model of entrepreneurial start ups in an economy with costly firm creation costly entry to the skilled labor market and a mismatch between skilled workers and available jobs as prevailing in many developing countries it examines several mitigating policies such as improving the business environment reducing tax rates and cost of starting business and subsidizing entrepreneurial search and skilled employment to be effective policies need to target the most binding constraints to productive entrepreneurship when the constraints are on the side of firms search subsidies would be more effective in encouraging productive start ups than subsidies to skilled employment although fewer entrepreneurs may choose to operate in the formal sector than under the latter both types of subsidies should be phased out with reforms of the business environment and improved labor markets

the flip side of fashion used clothing exports to the third world since the early 1970s western countries have increasingly recycled their second hand clothes by exporting to the third world in response some ldc governments have banned used clothing imports to protect their domestic textile industries this article after reviewing the structure and evolution of world used clothing trade examines the consequences for africa s largest importer rwanda in this low income country with its small domestic textile industry displacement is minimal and imported used clothing offers a modest but rare policy lever for directly increasing national income as well as incomes of the rural poor

nash equilibrium in strategic bidding a binary expansion approach this paper presents a mixed integer linear programming solution approach for the equilibrium problem with equilibrium constraints epec problem of finding the nash equilibrium ne in strategic bidding in short term electricity markets a binary expansion be scheme is used to transform the nonlinear nonconvex ne problem into a mixed integer linear problem milp which can be solved by commercially available computational systems the be scheme can be applicable to cournot bertrand or joint price quantity bidding models the approach is illustrated in case studies with configurations derived from the 95 gw brazilian system including unit commitment decisions to the price maker agents

risk constrained self scheduling of a thermal power producer this paper addresses the self scheduling problem of a price taker power producer it focuses on risk modeling emphasizing the tradeoff existing between maximum profit and minimum risk the paper analyzes a self scheduling model that considers simultaneously profit and risk this model is formulated as a mixed integer quadratic programming problem which is solved using commercially available software relevant results from a realistic case study are discussed

optimal response of a thermal unit to an electricity spot market this paper addresses the optimal response of a thermal unit to an electricity spot market the objective is to maximize the unit profit from selling both energy and spinning reserve in the spot market the paper proposes a 0 1 mixed integer linear programming approach that allows a rigorous modeling of i nonconvex and nondifferentiable operating costs ii exponential start up costs iii available spinning reserve taking into account ramp rate restrictions and iv minimum up and down time constraints this approach overcomes the modeling limitations of dynamic programming approaches and is computationally efficient results from realistic case studies are reported

optimal offering and operating strategy for a large wind storage system as a price maker wind farms and energy storage systems are playing increasingly more important roles in power systems which makes their offering nonnegligible in some markets from the perspective of wind farm energy storage systems wf ess this paper proposes an integrated strategy of day ahead offering and real time operation policies to maximize their overall profit as participants with large capacity in electricity markets can influence cleared prices by strategic offering a large scaled wf ess is assumed to be a price maker in day ahead markets correspondingly the strategy considers influence of offering quantity on cleared day ahead prices and adopts linear decision rules as the real time control strategy these allow enhancing overall profits from both day ahead and balancing markets the integrated price maker strategy is formulated as a stochastic programming problem where uncertainty of wind power generation and balancing prices are taken into account in the form of scenario sets permitting to reformulate the optimization problem as a linear program case studies validate the effectiveness of the proposed strategy by highlighting and quantifying benefits comparing with the price taker strategy and also show the profit enhancement brought to the distributed resources

what drives compliance an application of the theory of planned behaviour to urban water restrictions using structural equation modelling abstractthis article presents analysis of households intentions to comply with government constraints on the use of urban water or so called water restrictions the data are drawn from australian cities and was collected during a severe drought structural equation modelling is employed to operationalize constructs taken from the theory of planned behaviour and to answer important policy questions related to compliance the modelled data support the view that attitudes social norms and perceived behavioural control pbc have a positive and significant influence on intentions to comply pbc has the strongest influence on intentions suggesting policy directed at assisting households to meet regulatory criteria might be at least as effective as advertising expenditures aimed at shaping attitudes and norms importantly intentions to comply are also shown to have a positive and significant influence on reported compliance behaviour

self scheduling of large consumers with second order stochastic dominance constraints this paper develops a decision making framework for mid term scheduling problems of the large industrial consumers the proposed approach is based upon the recently introduced class of stochastic programming problems established by the concept of second order stochastic dominance ssd in this paper it is assumed that the electricity price and the rate of availability unavailability of the generating unit forced outage rate are the sources of uncertainty in the decision making problem in the developed ssd constrained stochastic programming problem the consumer risk is managed by minimization of the pool procurement as the objective function and economic issues e g cost minimization are considered in the sd constraint furthermore while most approaches optimize the cost subject to an assumed demand profile our method enforces the electricity consumption to follow an optimum profile for mid term time scheduling i e three months 12 weeks so that the total production will remain constant simulation results for a typical cement factory as an industrial consumer and comparison to a mean risk approach with cvar risk measure revealed the interesting results and benefits of the proposed approach

a comparison between economic systems with an application to transition abstract this paper develops a general equilibrium theory of endogenous firm and class formation under non contractibility with heterogeneous individuals a collectivist economy a private ownership economy and a mixed economy are compared on the basis of identical economic fundamentals methodological symmetry each economic system generates specific inefficiencies so that none dominates the others in general the main trade off is between the welfare loss associated with risk taking in the private ownership economy and the informational problems in the collectivist economy we then use this framework to study the political economy of transition between economic systems and provide detailed welfare results

used clothing donations and apparel production in africa this article examines the importance of one possible explanation for the failure of african countries to step onto the bottom rung of the manufacturing sophistication ladder that is to produce apparel used clothing donations to thrift shops and other organisations in industrialised countries typically end up being sold to consumers in africa since used clothing is initially provided as a donation it shares characteristics with food aid which always assists consumers but at times harms african food producers used clothing imports are found to have a negative impact on apparel production in africa explaining roughly 40 of the decline in production and 50 of the decline in employment over the period 1981 2000

price maker economic bidding in two settlement pool based markets the case of time shiftable loads in this paper a new scenario based stochastic optimization framework is proposed for price maker economic bidding in day ahead and real time markets the presented methodology is general and can be applied to both demand and supply bids that is no restrictive assumptions are made on the characteristics of the pool and its agents however our focus is on the operation of time shiftable loads with deadlines because they play a central role in creating load flexibility and enhancing demand response and peak load shaving programs both basic and complex time shiftable load types are addressed where the latter includes time shiftable loads that are uninterruptible have per time slot consumption limits or ramp constraints or comprise several smaller time shiftable subloads four innovative analytical steps are presented in order to transform the originally nonlinear and hard to solve price maker economic bidding optimization problem into a tractable mixed integer linear program accordingly the global optimal solutions are found for the price and energy bids within a relatively short amount of computational time a detailed illustrative case study along with multiple case studies based on the california energy market data are presented it is observed that the proposed optimal price maker economic bidding approach outperforms optimal price maker self scheduling as well as even load distribution

taxation and labour supply with risky activities consider the following three phenomena a in recent years dramatic shifts in the types of contract between london cabbies and the taxi owners have been observed b if one tries to hire a housepainter in the uk one is often quoted two rates one for official work during regular hours and for unofficial weekend and evening work c in two unrelated discussions with economics professors about the textbook model of taxation and labour supply each revealed to me that marginal hours released from his regular employment were spent not in the form of leisure but in participating in stock market speculation

a reexamination of the neoclassical trade model under uncertainty abstract this paper presents a model that pinpoints the exact places and reasons that the propositions of the heckscher ohlin samuelson model break down under uncertainty within the model if preferences exhibit decreasing absolute risk aversion i a capital poor country tends to obtain lower revenues from its resources than the same resources would yield in capital rich countries ii if there is one riskless and one risky sector a capital abundant country tends to have a comparative advantage in the risky sector and iii the pattern of trade depends on the intra national as well as the inter national distribution of endowments

optimal self scheduling of thermal units during commissioning this paper addresses the problem of the self scheduling of thermal generating units during commissioning a 0 1 mixed integer linear formulation is presented which allows an accurate and realistic modeling for the scheduling of the commissioning tests that should be performed once the construction of the thermal unit has been completed and prior to entering its commercial operation a flexible contract between the producer and the contractor regarding the performing period of the commissioning tests is proposed the model presented can be used by a producer with thermal units in commissioning who acts either as a price taker or a price maker in the day ahead energy market test results on a medium scale real test system address the effect that the implementation of the proposed model has on the producer profits as well as on the day ahead market clearing prices

predictive analytics and the targeting of audits the literature on audit strategies has focused on random audits or on audits conditioned only on income declaration in contrast tax authorities employ the tools of predictive analytics to identify taxpayers for audit with a range of variables used for conditioning the paper explores the compliance and revenue consequences of the use of predictive analytics in an agent based model that draws upon a behavioral approach to tax compliance the taxpayers in the model form subjective beliefs about the probability of audit from social interaction and are guided by a social custom that is developed from meeting other taxpayers the belief and social custom feed into the occupational choice between employment and two forms of self employment it is shown that the use of predictive analytics yields a significant increase in revenue over a random audit strategy

simulating oligopolistic pool based electricity markets a multiperiod approach this paper simulates a pool based electricity market and identifies equilibrium patterns a multiperiod framework that requires the use of continuous and binary variables is considered producers can be either price takers or price makers although price makers and their behavior characterize the market the elasticity of the loads is modeled through piecewise constant price demand curves the market operator uses a detailed network constrained market clearing auction that results in hourly market clearing prices the behavior of the market participants and the market itself are characterized through a repetitive simulation procedure the tool presented in this paper is particularly useful for the market regulator that may use it to monitor the market and to identify the exercise of market power by producers results from a realistic case study are presented and discussed

modeling the impact of a wind power producer as a price maker wind energy is present in many countries throughout the world the main types of wind sales in electricity markets are via regulated tariffs or pool based markets production companies choose cost effective options for selling wind energy and some markets like the irish electricity market use regulated tariffs to remunerate wind production this paper aims to provide some answers to explain what effect wind offers may have in an electricity market if wind power producers participated in the day ahead market without receiving any premium or aid a price maker optimization model is used to detect its effect on prices the model encompasses energy offers by other technologies using residual demand curves and detailed modeling of wind imbalances it is observed that wind acting as price maker reduces electricity prices and the imbalance penalties help the system operator to reduce imbalances a realistic case study using data from the irish electricity market illustrates the methodology used comparing the effect of imbalance penalties in the models in terms of profit and total imbalance of the system

risk constrained scheduling and offering strategies of a price maker hydro producer under uncertainty this paper presents a stochastic mixed integer linear programming smilp approach to maximize total expected profit of one price maker hydro producer in a pool based electricity market head dependence commitment decisions discharge ramping startup costs and forbidden zones are all effectively handled in our approach uncertainty about the competitors offers is adequately represented by residual demand curves rdcs scenarios the management of risk is suitably addressed by conditional value at risk cvar to provide the efficient frontier i e the solutions set for which the expected profit may not be augmented without enlarging the variance of profit appropriate offering strategies to the pool are also developed consisting of supply functions built for different risk levels a representative cascaded hydro system with 7 reservoirs is considered to analyze and compare risk neutral versus risk averse results

strategic bidding under uncertainty a binary expansion approach this work presents a binary expansion be solution approach to the problem of strategic bidding under uncertainty in short term electricity markets the be scheme is used to transform the products of variables in the nonlinear bidding problem into a mixed integer linear programming formulation which can be solved by commercially available computational systems the be scheme is applicable to pure price pure quantity or joint price quantity bidding models it is also possible to represent transmission networks uncertainties scenarios for price quantity plant availability and load financial instruments capacity reinforcement decisions and unit commitment the application of the methodology is illustrated in case studies with configurations derived from the 80 gw brazilian system

price maker self scheduling in a pool based electricity market a mixed integer lp approach this paper addresses the self scheduling problem faced by a price maker to achieve maximum profit in a pool based electricity market an exact and computationally efficient mixed integer linear programming milp formulation of this problem is presented this formulation models precisely the price maker capability of altering market clearing prices to its own benefits through price quota curves no assumptions are made on the characteristics of the pool and its agents a realistic case study is presented and the results obtained are analyzed in detail

optimal self scheduling of a thermal producer in short term electricity markets by milp this paper addresses the problem of the self scheduling of a thermal electricity producer in day ahead energy and reserves markets a 0 1 mixed integer linear formulation of the producer self scheduling problem is provided which allows a realistic and accurate modeling of the unit s operating phases a novel unit start up modeling is presented in which three different start up types are modeled hot warm and cold each with distinct start up cost synchronization time soak time and predefined start up power output trajectories all dependent on the unit s prior reservation time test results address the effect of the energy and reserves market clearing prices on the producer units day ahead commitment status and profits

taxation risk and returns to scale abstract this paper examines the effect of a profit tax with full loss offset on the equilibrium number of firms equilibrium size of firms and the equilibrium wage rate the effect of such a tax depends on economies of scale in particular if stochastic increasing returns to scale prevail at equilibrium then the imposition of such a tax raises the equilibrium wage rate this has implications for optimal taxation and tax incidence

linear complementarity models of nash cournot competition in bilateral and poolco power markets two cournot models of imperfect competition among electricity producers are formulated as mixed linear complementarity problems lcps and a simple example is presented to illustrate their application the two models simulate bilateral markets the models include a congestion pricing scheme for transmission but other transmission pricing approaches can also be represented in this framework the two models differ from each other in that one has no arbitrage between nodes of the network while in the other model arbitragers erase any noncost based differences in price the latter bilateral model turns out to be equivalent to a cournot model of a poolco the models differ from other cournot market models in that they include both of kirchhoff s laws via a dc approximation can include arbitragers possess unique solutions and are readily solved by efficient lcp algorithms the key assumption that permits their formulation as lcps is that each producer naively assumes that its output will not affect transmission prices

a robust linear approach for offering strategy of a hybrid electric energy company this paper presents a new approach for determining the day ahead bidding strategies of a large scale hybrid electric energy company the company has both energy generation and energy retailing businesses in a competitive electricity market demand response programs are also considered in the retail side of the company in order to hedge the risk of participation in wholesale market this paper introduces a max min bilevel mathematical programming with equilibrium constraint model for offering a strategy that manages the risk of uncertain forecasted rivals bids by robust optimization the max min bilevel model is converted to its equivalent single level optimization using karush kuhn tucker optimality conditions the duality theory is utilized to find the equivalent ordinary maximization model of the max min problem strong duality theory and big m method are also used to linearize the final model of offering strategy applicability of the proposed approach is shown by implementing it on the ieee 118 bus test system

residual demand curves for modeling the effect of complex offering conditions on day ahead electricity markets residual demand curves rdcs can be used to represent the strategic interaction of participants in electricity markets rdcs relate the energy that an agent can buy or sell in one hour with the clearing market price that would be obtained in such hour assuming the market is organized as simple bid independent auctions despite the fact that they have been widely used in the literature the existence of time and or spatial constraints in the market clearing algorithm makes the rdcs not directly applicable this paper tries to overcome these difficulties by extending the concept of rdcs to zonal pricing markets where complex offering conditions and transmission constraints are taken into account therefore the rdcs are redefined in order to capture such effects which are usually neglected or oversimplified a new method for computing the redefined rdcs is established and its application to the iberian electricity market is presented the results show that modeling complex conditions and transmission constraints in rdcs can have a significant effect when compared to the standard approach found in the literature therefore the method presented in this paper modeling the effect of firm s decisions on market prices in a more accurate way

risk constrained bidding strategy with stochastic unit commitment this paper develops optimal bidding strategies based on hourly unit commitment in a generation company genco that participates in energy and ancillary services markets the price based unit commitment problem with uncertain market prices is modeled as a stochastic mixed integer linear program the market price uncertainty is modeled using the scenario approach monte carlo simulation is applied to generate scenarios scenario reduction techniques are applied to reduce the size of the stochastic price based unit commitment problem and postprocessing is applied based on marginal cost of committed units to refine bidding curves the financial risk associated with market price uncertainty is modeled using expected downside risk which is incorporated explicitly as a constraint in the problem accordingly the proposed method provides a closed loop solution to devising specific strategies for risk based bidding in a genco illustrative examples show the impact of market price uncertainty on genco s hourly commitment schedule and discuss the way gencos could decrease financial risks by managing expected payoffs

tax evasion and occupational choice this paper is concerned with the combined effect of tax compliance and tax audit policy on the occupational choice of individuals and on public policy objectives such as tax revenue total production and social welfare individuals are assumed to have a choice between riskless work and a risky entrepreneurial occupation they are only differentiated according to their attitudes towards risk more risk averse individuals go into the safe occupation and less risk averse people become entrepreneurs tax evasion is only accessible to the latter and therefore its control tends to discourage risk taking whether control of tax evasion is desirable for the economy as a whole depends on the objective function of the government it is shown that tax audit policy has conflicting effects on tax revenue per capita income and social welfare these conflicts are illustrated through a numerical example in this paper the emphasis is placed on the clarity and the simplicity of the presentation so as to argue that even though the tax schedule can hardly be differentiated across individuals tax evasion and its control can be used by policymakers to introduce variability in the individual s tax treatment

the optimal linear taxation of employment and self employment incomes abstract this paper models optimal linear taxation when occupational choice and labour supply are endogenous workers choose between paid employment self employment and unemployment self employment incomes are risky and employees may be involuntarily laid off calibrating the model to the uk economy the optimal tax solution involves relatively high taxation with substantial redistribution and a higher nominal but not effective marginal tax rate imposed on the self employed than on employees the implications of making unemployment benefits as well as tax rates endogenous are also analysed and robustness checks are performed

optimal bidding strategies for hydro electric producers a literature survey in a competitive environment with bid based markets power generation companies desire to develop bidding strategies that maximize their revenue in this paper we ask what approaches and methodologies have been used to model the bidding problem for hydro electric producers we present the problem s developments over time and through reviewing different variants of the problem progressively build to the case in which the agent is a price maker hydro electric producer in each variant of the bidding problem we examine how the approaches used to solve it may or may not be applicable to other variants last for the price maker hydro electric producer s bidding problem we recognize the most recent developments and illuminate a path for future efforts