-tax reforms using a model economy that replicates the U.S. distributions of earnings, income and wealth in very much detail. We … of after-tax income. In contrast, the more progressive reform brings about a -2.6% reduction in steady state output and a … distribution of after-tax income that is more egalitarian. We also find that in the less progressive flat-tax economy aggregate …

children, may move up the income ladder. This ‘Prospect of Upward Mobility’ (POUM) hypothesis is commonly advanced to explain …. There is a range of incomes below average where agents oppose lasting redistributions, provided tomorrow’s expected income … is increasing and concave in today’s income. The laissez-faire coalition is larger the more concave the transition …

high inequality and low redistribution, or vice versa. Temporary shocks to the distribution of income or the political … redistributions decreases with the degree of inequality, at least over some range. Moreover, capital market imperfections make future …

This paper studies the effects of progressive income taxes and education finance in a dynamic heterogeneous agent … to higher income growth than taxes and transfers, but at the cost of lower insurance. Overall efficiency is assessed … optimal rates. Aggregate income and aggregate welfare provide only very crude lower and upper bounds around the true …

of debt service and redistribute income from the rich to the poor. Consequently, inequality sows the seeds for inflation …A democratic society in which the distribution of wealth is unequal elects political parties which tend to represent … inequality, for a cross-section of democratic countries. …

cycle, of several dimensions of economic inequality, including wages, labor earnings, income, consumption, and wealth. After … and the cyclical fluctuations in income inequality. The rise in income inequality was stronger at the bottom of the … distribution. Consumption inequality increased less than disposable income inequality, and tracked the latter much more closely at …

How do aggregate wealth-to-income ratios evolve in the long run and why? We address this question using 1970 … able to extend our analysis as far back as 1700. We find in every country a gradual rise of wealth-income ratios in recent … growth, in line with the β=s/g Harrod-Domar-Solow formula. That is, for a given net saving rate s= 10%, the long run wealth-income …

inheritance. Wealth-income ratios, inherited wealth, and wealth inequalities were high in the 18th-19th centuries up untilWorldWar …-of-tax rate of return on wealth and g is the economy's growth rate. This suggests that current trends toward rising wealth-income … ratios and wealth inequality might continue during the 21st century, both because of the slowdown of population and …

interactive information on U.S. income inequality, the link between top income tax rates and economic growth, and the estate tax …This paper analyzes the effects of information about inequality and taxes on preferences for redistribution using …. We find that the informational treatment has very large effects on whether respondents view inequality as an important …