Search Results (40)

This paper develops a dynamic signaling framework to analyze how educational investment evolves under imperfect information and how the informational value of credentials changes over time. It addresses a central question: under what conditions do signaling equilibria become fragile, and how does this fragility generate educational overinvestment and credential inflation in equilibrium? The model features heterogeneous productivity groups and endogenous educational choices, in which education plays both a signaling and a productive role. Informational frictions and wage-setting mechanisms jointly determine equilibrium configurations, allowing for separation, pooling, and mixed equilibria. The analysis shows that separating equilibria are inherently fragile: when signaling costs decline or when the share of lower-productivity workers becomes sufficiently small, incentives for imitation intensify, progressively eroding informational differentiation. This fragility gives rise to a cascade mechanism of overinvestment, whereby individuals increase educational attainment beyond efficient levels to preserve relative positioning. As a result, signaling distortions propagate across educational levels, generating persistent credential inflation and weakening the informational content of degrees. The framework also identifies conditions under which mixed equilibria may dominate separating equilibria in terms of aggregate welfare, particularly when the proportion of low-productivity workers is limited. By incorporating a productive dimension of education, the model distinguishes between pure signaling rents and genuine productivity gains, providing a unified interpretation of overeducation, declining returns to credentials, and persistent wage dispersion. Finally, the analysis characterizes an optimal taxation scheme that eliminates inefficient signaling rents while preserving incentives for productivity-enhancing investment. Taken together, the results highlight how equilibrium fragility, informational distortions, and strategic educational measures provide a unified explanation for diploma inflation, equilibrium segmentation, and persistent deviations from socially optimal investment levels. Full article

This article examines how the redistributive design of crisis-time fiscal policy shaped Belgian federal public debt trajectories from 1912 to 2024. Drawing on a reconstructed debt-to-GDP series and historical–institutional analysis, it identifies a secular transformation in the distributive logic of fiscal adjustment. From 1912 to the late 1970s, broadly speaking, debt surges were addressed through explicitly progressive instruments grounded in the ability-to-pay principle, and on the view that capital should be taxed at least as heavily as labour. From the 1980s onward, this paradigm gave way to a competitiveness-oriented model that eroded tax progressivity, detached capital from the global tax base, and shifted the fiscal burden onto consumption and labour—disproportionately affecting middle-income earners. The evidence presented in this article points to three plausible determinants of this transformation: the role of mass warfare in legitimising progressive taxation; the ideological shift from Keynesian interventionism to supply-side orthodoxy; and the twin constraints of internal federalisation and external Europeanisation. Furthermore, the timing and modalities of these adjustments appear to have been significantly shaped by linguistic party fragmentation and the recurrent use of emergency executive powers—a pattern that was increasingly mirrored in the European Union’s own governance. Ultimately, since 2020, crisis management has relied almost exclusively on debt-financed expenditure. While the EU has temporarily acted as a redistributive counterweight to domestic fiscal paralysis, these ad hoc supranational interventions have left Belgium’s underlying debt trajectory unchanged. Full article

Sub-Saharan African health systems face critical funding challenges due to declining foreign aid, mounting debt and increasing disease burdens. Traditional financing mechanisms have proven inadequate, necessitating the exploration of innovative domestic revenue mobilization (DRM) strategies. This paper contributes to the health economics literature by examining the use of innovative tax models as DRM strategies for sustainable health financing in Sub-Saharan Africa, using the fiscal space for health framework. This narrative review synthesizes peer-reviewed articles, policy documents, and grey literature published between 2010 and 2025. The review identifies four promising innovative models: health taxes (tobacco, alcohol, sugar-sweetened beverages), environmental levies (pollution, carbon, plastic), digital taxation (digital services taxes, mobile money taxes, Value Added Tax (VAT) on digital services) and resource extraction taxes. The evidence demonstrates significant revenue generation potential while achieving public health and environmental co-benefits. However, critical implementation challenges persist: weak administrative capacity, poor governance quality, equity concerns and extensive informality and economic diversity. The paper recommends strengthening tax administration through digital infrastructure investment and capacity building, implementing progressive tax design with targeted exemptions, enhancing transparency and linking tax revenue to health service delivery, and tailoring reforms to country-specific contexts while learning from regional experience. Full article

Positional consumption is spending valued mainly for relative standing rather than intrinsic usefulness. A progressive consumption tax can, in principle, reduce the social costs of status-driven spending by taxing consumption rather than saving, but it may face resistance. We examine a behavioral evaluation channel in which status quo bias and loss aversion can sustain positional consumption and reduce support for this reform. We combine a fully specified, reproducible in silico simulation of tax acceptance with a real-participant gain–loss questionnaire that benchmarks positional-choice patterns under matched items. In grouped fractional-response estimates from the simulated data, the post-condition increases predicted acceptance from about 0.11 to about 0.22 and is statistically significant (p < 0.001), while higher status quo and loss-aversion proxy intensity predicts lower acceptance and is statistically significant (p < 0.001). Policy framing increases predicted acceptance relative to the Neutral frame. In the questionnaire, loss framing shifts choices toward absolute outcomes relative to gain framing, consistent with attenuated positional motives. The framework provides a transparent way to stress test how framing and bundled communication and comprehension supports can shift acceptance of progressive consumption taxation under stated assumptions. Full article

The sustainable transformation of electronics supply chains (ESCs) increasingly relies on effective green supply chain planning under carbon pricing and demand uncertainty. However, prior studies often lack an integrated framework that jointly considers carbon taxation, green technology investment, and profitability—environment trade-offs in forward and reverse supply chains. To address this gap, this study proposes a fuzzy multi-goal optimization model using linear goal programming under progressive carbon taxation. The model incorporates fuzzy demand (triangular fuzzy numbers), carbon emissions, carbon taxes, and green investment costs and is converted into a solvable linear form via a defuzzification-based procedure to simultaneously achieve multiple aspiration levels for economic and environmental objectives. A real-world ESC case validates the model. The results show that carbon taxation and green investments can reduce emissions while maintaining profitability, with total cost and emission sensitivity of ±10–20% across different policies and demand uncertainty settings. The findings support adaptive, policy-aware planning by guiding green investment intensity and forward–reverse logistics decisions to balance cost efficiency and emissions reduction and provide actionable insights for managers facing progressive carbon pricing regulations. Full article

For over a century now, one of the central debates of economic policy has been around fiscal policy. Taxation and government spending have been a feature of most political campaigns, with one (more vocal) side claiming that taxation chokes economic growth and benefits special interests, while leaving a legacy of debt. Another side sees taxation as a necessary tool for creating equal opportunity and ensuring adequate investment in collective public goods, including human capital. Using newly constructed datasets that we will make available, we take a fresh look at fiscal policy on the global level and across U.S. states, measuring its effects on growth and equity. We utilize a new technique, functional data analysis (FDA). We find limited evidence for both the conservative and progressive arguments around fiscal policy in the short term. Rather, the data suggest persistent fiscal patterns across space and time that reflect long-term social value choices around the tradeoffs of growth vs. public investment and equity. Full article

The theological rendering of economics in the Bahá’í Faith—particularly from ‘Abdu’l-Bahá—advocated progressive taxation, a strong welfare state, the abolition of trusts, and the redistribution of wealth. These orientations directly diverge from “neoliberal” economic theory, especially as articulated by Frederick Hayek: concerns that social justice exacerbates poverty and claims that progressive taxation is “discrimination.” Despite these seemingly antithetical orientations, there has been a slow and tentative, if not uneasy, meeting of Bahá’í and neoliberal ideals in global organizations and scholarship. Through a comparative analysis of the writings of both ‘Abdu’l-Bahá and Friedrich Hayek, I first illuminate the fundamental disagreements on economy and society between Bahá’í theology and neoliberalism. Second, I cover recent scholarship on the moralization of markets and the sacralization of financial actors in order to contextualize the historical and contemporary unions of theology and economy. Third, I outline how ‘Abdu’l-Bahá’s theological vision and Hayek’s neoliberal theories accrete around four mutual worldviews, which can tempt hermeneutic deemphases of the fundamental divergences in Bahá’í and neoliberal logics: (1) the duality of human nature, (2) the limits of materialist reason, (3) the apotheosis of the market and self-love, and (4) sacrificial submission to transcendent authority. Full article

This research evaluates the financial sustainability of a basic income (BI) model funded through carbon taxation in Türkiye. Unlike classical BI models that provide unconditional transfers to everyone, this study proposes an income support scheme targeted only at those below the poverty line. The model seeks to balance limited resources with the goal of social equity. In this scenario, sectoral carbon taxation evolves progressively. The tax starts with the energy sector, which has the highest emissions, and subsequently shifts to industry and other sectors. Emissions will be reduced by 1% each year, while a carbon tax that starts at USD 12 per ton will be dynamically converted to TL based on the increasing exchange rate year by year. The simulation looks at 2023–2050 and computes annual revenue and expenditure forecasts for the period. The findings indicate that the revenues from carbon taxation are not only sufficient to cover the prioritized expenditure in the targeted basic income (TBI) scheme but also will lead to fiscal surplus in the long run. The research proposes for the first time a framework which integrates social protection and the environmental taxation of carbon, synergizing policies aimed at alleviating income disparity and climate change within Türkiye’s context. Full article

In Portugal, public policies promoting a healthy diet have gained prominence in recent years, reflecting a growing concern with the population’s health status and its individual, social, economic, and political impact. These policies aim to mitigate the impact of inadequate eating habits as a determinant of health and the population’s disease burden. Based on a document analysis, the main objective of this article is to explore public healthy diet policies in Portugal following the 2017 implementation of the Estratégia Integrada para a Promoção da Alimentação Saudável (Integrated Strategy for the Promotion of a Healthy Diet), which is the primary guiding instrument for these policies. Among the most impactful legislative measures found in this sector, we highlight the reformulation of food products, food taxation, food marketing regulation, food incentives, and food labeling. Despite significant progress in promoting healthy diets, some challenges still remain, particularly the growing prevalence of behavior-related chronic non-communicable diseases, like obesity, such as the maintenance of a set of health determinants related to inadequate nutrition. Thus, the continuity and deepening of such policies, combined with continuous impact assessments, are crucial to ensuring a healthier future. Full article

After the fall of communism, Romania embarked on a comprehensive land restitution process through Law No. 18/1991, aiming to re-establish private ownership rights, particularly for agricultural and forestry lands. Divergent historical legacies across regions have resulted in heterogeneous land administration systems, contributing to inconsistencies, overlapping claims, and prolonged legal disputes. To address these challenges, the Romanian government introduced the National Cadastre and Land Registration Program, which promotes systematic property registration across the country. Keeping in mind the fact that there is no integrated study that analyses national challenges from multiple dimensions such as history, law, institutions, technology, and socioeconomics and proposes systematic optimization strategies, this article provides a critical analysis of the legal and institutional framework governing land restitution and cadastral reform, highlighting the influence of historical administrative structures and the adoption of modern geospatial technologies such as Geographic Information Systems (GISs) and Unmanned Aerial Vehicles (UAVs). By adopting a qualitative and document-based research approach, focusing on the analysis of legislative frameworks, institutional procedures, and technical instruments used in systematic land registration in Romania, this study emphasizes the benefits of systematic registration, including increased legal certainty, investment stimulation, improved access to credit, and better planning and taxation. Despite progress, implementation remains uneven, hindered by documentation gaps, institutional capacity limitations, and administrative obstacles. Recent legislative adjustments and the integration of advanced geospatial tools aim to improve data quality and accelerate the registration process. Ultimately, the integration of legal, institutional, and geospatial components is essential for achieving transparent and accountable land governance, efficient resource management, and sustainable rural development in Romania. Full article

Divergences in tax policies are evident among European OECD economies, due to varying priorities of efficiency vs. equity, influenced by the forms of direct vs. indirect taxation. The special interest of this paper is to identify how different tax forms (direct—corporate and personal income taxes (CIT, PIT); and indirect—value added tax (VAT)) affect inequality in European OECD economies in the period 2003–2020. Using heterogeneous non-stationary panel models and the (Pooled) Mean Group (PMG/MG) methods of estimation, a long-run negative relationship between direct tax forms (CIT, PIT) and the Gini coefficient was discovered, meaning that utilizing progressive direct tax forms resulted in more equity. The error-correction terms are heterogeneous, showing that developed economies decrease income inequality by using direct taxes more efficiently than emerging European OECD economies. The short-run statistically significant relationships between VAT and the Gini coefficient are discovered, meaning that certain European OECD economies effectively use VAT revenue to achieve greater equity in society. This study demonstrates that the use of indirect tax forms may be beneficial in terms of collecting more tax revenues, and that using them for redistributive programs can reduce inequality while maintaining economic efficiency. Full article

The increasing human demand for natural resources is leading to critical resource depletion. This depletion is exacerbated by exceeding the Earth’s biological regeneration rate, threatening ecosystems’ ability to renew biomass. This ecological challenge hinders the potential for simultaneous economic, social, and environmental progress. This study investigates the complex relationships between the USA’s per capita income, energy efficiency innovations, environmental taxation, political stability, and its biocapacity. Using annual data from 1990 to 2024, the paper employs a comprehensive causality testing framework that accounts for the nonlinear nature of the data, as asymmetric effects are observed. This framework includes the Quantile Autoregressive Distributed Lags model (Q-ARDL), the Wald test for parameter consistency, and the Granger-causality in Quantiles test (GC-Q), enabling the estimation of unique parameter vectors for each quantile. A key finding reveals that the impact of per capita GDP on biocapacity is significantly larger than that of other regulatory mechanisms. This suggests that carbon pricing and energy efficiency technologies require widespread implementation to offset the environmental impact of economic growth. The quantile regression reveals complex short-run impacts on biocapacity with persistent positive effects from its lag, contrasting with the diminishing negative influence of GDP and positive influence of energy efficiency at higher quantiles, while long-run analysis shows a consistent negative impact of GDP and varying positive or nonlinear effects of other factors. Granger-causality tests indicate significant unidirectional positive effects from energy efficiency and political stability to biocapacity, a bidirectional relationship for environmental taxes in upper quantiles and GDP across all quantiles. The associated methodological and policy implications aim to assist policymakers in achieving a better balance between the benefits and costs of natural resource use in the USA, promoting sustainable development. Full article

The EU has consistently tackled the challenge of energy poverty (EP) through various legislative and non-legislative measures, particularly in the context of ongoing energy crisis, but it should also support the reduction of income inequality that might accelerate EP. The aim of this study is to evaluate the impact of income inequality on EP and other interconnected indicators in the EU in the period 2005–2023 using method of moments quantile (MMQ) regression and mean group (MG) estimators. The results suggest that income inequality based on Gini index enhances energy poverty, while gender pay gap, economic growth, and urban population reduce it. Foreign direct investment (FDI) and renewable energy consumption (REC) might combat EP only in the long-run. These findings suggest that macroeconomic policies should focus not only on economic growth, but also on addressing income inequalities. Policymakers must prioritize measures to reduce income inequality, such as progressive taxation or targeted social programs. Full article

This article conducts a comprehensive bibliometric analysis of 182 papers to trace the progression of research on cryptocurrency taxation. The study highlights prevailing patterns, influential contributors, and collaborative networks by utilising data from Scopus and the Web of Science Core Collection from 2002 to 2023. The findings underscore an interdisciplinary character, encompassing studies in legal frameworks, fiscal policy, economics, and technology. By employing analytical tools such as VOSviewer 1.6.20, Bibliometrix 4.0 and Microsoft Excel, the study identifies key themes and concepts focused on four main themes: international tax frameworks and regulatory variations, classification and reporting of crypto-related income, tax implications for emerging crypto segments, and issues surrounding compliance and enforcement. Tax treatment differs based on jurisdiction. Direct taxation may be levied as capital gains, income, or profit tax. Although cryptocurrency exchanges are not subject to value-added tax, intermediary services offered by platforms might incur this indirect tax. The insights generated are valuable for policymakers, scholars, and professionals aiming to comprehend the relationship between cryptocurrency and tax regulation. A limitation of the study is its exclusion of sources beyond the established timeframe. Given the fast-paced changes in cryptocurrency tax regulation, ongoing updates are crucial to capturing the full scope of this evolving field. Full article

Under the global dual-carbon background, heightened public awareness of climate change and strengthened carbon taxation policies are increasing pressure on the steel industry to transition. Given the urgent need for carbon reduction, the exploration of low-carbon pathways in a blast furnace (BF) metallurgy emerges as crucial. Evaluating both asset retention and technological maturity, the development of low-carbon technologies for BFs represents the most direct and effective technical approach. This article introduces global advancements in low-carbon metallurgical technologies for BFs, showcasing international progress encompassing hydrogen enrichment, oxygen enrichment, carbon cycling technologies, biomass utilization, and carbon capture, utilization, and storage (CCUS) technologies. Hydrogen enrichment is identified as the primary technological upgrade currently, although its carbon emission reduction potential is limited to 10% to 30%, insufficient to fundamentally address high carbon emissions from BFs. Therefore, this article innovatively proposes a comprehensive low-carbon metallurgical process concept with the substitution of carbon-neutral biomass fuels at the source stage—intensification of hydrogen enrichment in the process stage—fixation of CCUS at the end stage (SS-IP-FE). This process integrates the cleanliness of biomass, the high-efficiency of hydrogen enrichment, and the thoroughness of carbon fixation through CCUS, synergistically enhancing overall effectiveness. This integrated strategy holds promise for achieving a 50% reduction in carbon emissions from BFs in the long processes. Critical elements of these core technologies are analyzed, assessing their cost-effectiveness and emission reduction potential, underscoring comprehensive low-carbon metallurgy as a pivotal direction for future steel industry development with high technological feasibility and emission reduction efficacy. The article also proposes a series of targeted recommendations, suggesting short-term focus on technological optimization, the medium-term enhancement of technology research and application, and the long-term establishment of a comprehensive low-carbon metallurgical system. Full article