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Optimal Sovereign Debt Relief and Exclusion with Unobservable Physical Capital (2024)
Journal Article
Marsiliani, L., Renström, T. I., & Yaisawang, N. (2024). Optimal Sovereign Debt Relief and Exclusion with Unobservable Physical Capital. Theoretical Economics Letters, 14(1), 321-349. https://doi.org/10.4236/tel.2024.141018

We investigate the optimum lending arrangements when there is the possibility of partial default, in addition to full default, when physical capital is unobservable. In a model calibrated on Argentina, we find an optimal debt reduction of 39%, and op... Read More about Optimal Sovereign Debt Relief and Exclusion with Unobservable Physical Capital.

Decarbonisation Policies and Energy Price Reforms in Bangladesh (2022)
Journal Article
Amin, S., Jamasb, T., Llorca, M., Marsiliani, L., & Renström, T. (2022). Decarbonisation Policies and Energy Price Reforms in Bangladesh. Energy Policy, 170, Article 113224. https://doi.org/10.1016/j.enpol.2022.113224

Bangladesh electricity sector suffers from heavy subsidization of fossil fuels and regulated electricity prices. These interventions distort the fuel mix in electricity production, promote overconsumption of fossil fuels and slow down the low-carbon... Read More about Decarbonisation Policies and Energy Price Reforms in Bangladesh.

Captive Power, Market Access and Macroeconomic Performance: Reforming the Bangladesh Electricity Sector (2021)
Journal Article
Amin, S., Jamasb, T., Llorca, M., Marsiliani, L., Renström, T., & Sarkar, A. (2021). Captive Power, Market Access and Macroeconomic Performance: Reforming the Bangladesh Electricity Sector. Energy Economics, 102, Article 105468. https://doi.org/10.1016/j.eneco.2021.105468

Integrating the captive capacity with the on-grid supply has been advocated as a way to improve resource utilization in the electricity market in developing and emerging countries. Despite many countries granting Captive Power Plants (CPPs) access to... Read More about Captive Power, Market Access and Macroeconomic Performance: Reforming the Bangladesh Electricity Sector.

Optimal taxation in an endogenous growth model with variable population and public expenditure (2021)
Journal Article
Renström, T., & Spataro, L. (2021). Optimal taxation in an endogenous growth model with variable population and public expenditure. Journal of Public Economic Theory, 23(4), 639-659. https://doi.org/10.1111/jpet.12515

In this paper we analyse second-best optimal taxation in an endogenous-growth model driven by public expenditure, in presence of endogenous fertility and labour supply. Normative analysis shows positive taxes on the number of children, which are nece... Read More about Optimal taxation in an endogenous growth model with variable population and public expenditure.

Can subsidies rather than pollution taxes break the trade-off between economic output and environmental protection? (2020)
Journal Article
Renström, T. I., Spataro, L., & Marsiliani, L. (2021). Can subsidies rather than pollution taxes break the trade-off between economic output and environmental protection?. Energy Economics, 95, Article 105084. https://doi.org/10.1016/j.eneco.2020.105084

We build a general equilibrium dynamic model in which individual investors are endowed with “warm-glow” preferences a la Andreoni (1990) so that they feel partly responsible for the pollution content of their portfolio. Through investors’ portfolio c... Read More about Can subsidies rather than pollution taxes break the trade-off between economic output and environmental protection?.

Combining Private and Public Resources: Captive Power Plants and Electricity Sector Development in Bangladesh (2019)
Journal Article
Amin, S., Jamasb, T., Llorca, M., Marsiliani, L., & Renstrom, T. (2021). Combining Private and Public Resources: Captive Power Plants and Electricity Sector Development in Bangladesh. Emerging Markets Finance and Trade, 57(14), 3891-3912. https://doi.org/10.1080/1540496x.2019.1703107

Developing economies need to efficiently utilize both public and private resources to develop their energy sectors. The opportunity cost of failing to do so is high. This article uses a Dynamic Stochastic General Equilibrium (DSGE) approach to assess... Read More about Combining Private and Public Resources: Captive Power Plants and Electricity Sector Development in Bangladesh.

Optimal sin taxes in the presence of income taxes and health care (2019)
Journal Article
Marsiliani, L., Renstrom, T., & Wang, J. (2020). Optimal sin taxes in the presence of income taxes and health care. Economics Letters, 186, Article 108767. https://doi.org/10.1016/j.econlet.2019.108767

We present a unified approach to analyze sin taxes, by allowing for a non-paternalistic view, stemming from crowding-out externalities, in addition to the paternalistic view. Analytical results show the additive property between the Pigouvian and the... Read More about Optimal sin taxes in the presence of income taxes and health care.

Optimal taxation, environment quality, socially responsible firms and investors (2019)
Journal Article
Renstrom, T., Spatarom, L., & Marsiliani, L. (2019). Optimal taxation, environment quality, socially responsible firms and investors. International review of environmental and resource economics, 13(3-4), 339-373. https://doi.org/10.1561/101.00000112

We characterize the optimal pollution-, capital- and labour-tax structure in a continuous-time model in the presence of pollution (resulting from production), both in the first- and second-best, allowing investors to be driven by social responsibilit... Read More about Optimal taxation, environment quality, socially responsible firms and investors.

Population Growth: A Pure Welfarist Approach (2018)
Journal Article
Renström, T., & Spataro, L. (2019). Population Growth: A Pure Welfarist Approach. Journal of Public Economic Theory, 21(1), 135-166. https://doi.org/10.1111/jpet.12337

In this study we propose a framework based on welfarist principles to deal with several issues concerned with population economics models, such as the Repugnant Conclusion, both in absolute and relative sense, the shape of childbearing costs and popu... Read More about Population Growth: A Pure Welfarist Approach.

Population Growth and human capital: a Welfarist Approach (2015)
Journal Article
Renström, T., & Spataro, L. (2015). Population Growth and human capital: a Welfarist Approach. Manchester School, 83(S2), 110-141. https://doi.org/10.1111/manc.12110

In this paper, we investigate the relationship between economic and population growth in an endogenous growth model driven by human capital accumulation Because we allow for endogenous population growth, we adopt the population criterion “Relative Cr... Read More about Population Growth and human capital: a Welfarist Approach.

Optimal taxation, critical-level utilitarianism and economic growth (2012)
Journal Article
Spataro, L., & Renstrom, T. (2012). Optimal taxation, critical-level utilitarianism and economic growth. Journal of Public Economics, 96(9-10), 727-738. https://doi.org/10.1016/j.jpubeco.2012.05.001

We analyze tax policies in an intertemporal economy with endogenous fertility under critical-level utilitarianism, both from a positive and a normative standpoint. On the positive side, we analyze the effects of a change in the tax on capital income... Read More about Optimal taxation, critical-level utilitarianism and economic growth.

The optimum growth rate for population under critical-level utilitarianism (2011)
Journal Article
Renström, T., & Spataro, L. (2011). The optimum growth rate for population under critical-level utilitarianism. Journal of Population Economics, 24(3), 1181-1201. https://doi.org/10.1007/s00148-010-0348-2

We characterize optimal consumption, capital, and population growth of a production economy under critical-level utilitarianism. First, we show that neither classical utilitarianism nor average utilitarianism can avoid a corner solution for the popul... Read More about The optimum growth rate for population under critical-level utilitarianism.

Optimal dynamic labor taxation (2007)
Journal Article
Basu, P., & Renström, T. (2007). Optimal dynamic labor taxation. Macroeconomic Dynamics, 11(5), 567-588. https://doi.org/10.1017/s1365100507060221

We analyze optimal dynamic taxation when labor supply is indivisible. As in Hansen (1985) and Rogerson (1988), markets are complete, and an employment lottery determines who works. The consumer can buy insurance to diversify this income uncertainty.... Read More about Optimal dynamic labor taxation.

Political institutions and economic growth (2007)
Journal Article
Marsiliani, L., & Renstrom, T. (2007). Political institutions and economic growth. Economics of Governance, 8(3), 233-261. https://doi.org/10.1007/s10101-007-0038-z

We analyze the impact of micro-founded political institutions on economic growth in an overlapping-generations economy, where individuals differ in preferences over a public good (as well as in age). Labour- and capital taxes finance the public good... Read More about Political institutions and economic growth.

The role of government commitment for environmental policy and capital movements (2006)
Journal Article
Marsiliani, L., & Renström, T. (2006). The role of government commitment for environmental policy and capital movements. BE Journal of Macroeconomics, 6(3), Article 8. https://doi.org/10.2202/1534-5998.1229

This paper explores the relationship between environmental protection and international capital movements, when tax policy is endogenous (through voting). A two-period general equilibrium model of a small open economy is specified to compare the effe... Read More about The role of government commitment for environmental policy and capital movements.

Optimal dynamic taxation with indivisible labour (2004)
Journal Article
Basu, P., Marsiliani, L., & Renström, T. (2004). Optimal dynamic taxation with indivisible labour. Manchester School, 72(s1), 34-54. https://doi.org/10.1111/j.1467-9957.2004.00418.x

How should a government arrange taxes on labour and capital over time? To provide an answer, we develop the field of optimal dynamic taxation further by (i) incorporating indivisible labour and (ii) analysing the short-run dynamics of the capital and... Read More about Optimal dynamic taxation with indivisible labour.

Endogenous Taxation: An Overlapping Generations Approach (1996)
Journal Article
Renstrom, T. I. (1996). Endogenous Taxation: An Overlapping Generations Approach. The Economic Journal, 106(435), 471-482. https://doi.org/10.2307/2235261

The paper develops an overlapping generations framework of endogenous taxation. There are three types of heterogeneity among individuals: age, productivity, and bequest motives. The heterogeneity gives rise to a redistributive conflict and therefore... Read More about Endogenous Taxation: An Overlapping Generations Approach.