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Are Groups more Rational than Individuals? A Review of Interactive Decision Making in Groups

Kugler, Tamar; Kausel, Edgar E.; Kocher, Martin G. - CESifo - 2012

consistent in revealing that groups behave closer to the game-theoretical assumption of rationality and selfishness than …

Persistent link: https://www.econbiz.de/10009416117

The Weak Rationality Principle in Economics

Kirchgässner, Gebhard - CESifo - 2005

The weak rationality principle is not an empirical statement but a heuristic rule of how to proceed in social sciences …-foundation and, therefore, employ the rationality assumption in economic models. Then, with reference to the ‘bounded rationality … a part of the rationality assumption. We conclude with some remarks on handling the problems of ‘free will’ as well as …

Persistent link: https://www.econbiz.de/10005406455

Risk-Taking-Neutral Background Risk

Franke, Guenter; Schlesinger, Harris; Stapleton, Richard C. - CESifo - 2013

We define a class of risk-taking-neutral (RTN) background risks. These background risks have the property that they will not alter decisions made with respect to another risk, for individuals with HARA utility. If we wish to compare a decision made with and without some exogenous background...

Persistent link: https://www.econbiz.de/10010877707

Do Mobile Pensioners Threaten the Deferred Taxation of Savings?

Meier, Volker; Wagener, Andreas - CESifo - 2011

We investigate optimal taxation of lifetime income with and without an emigration option during old age. The government sets the rates of deferred taxation and of possibly reduced taxation of interest. If agents are immobile, the optimal policy consists in full deferral of income taxes on...

Persistent link: https://www.econbiz.de/10009351472

Human Capital Formation and Tax Evasion

Goerke, Laszlo - CESifo - 2012

A strictly risk-averse individual with an exogenous gross income in period one can acquire human capital in the same period and evade taxes. Period-two income rises with educational investments in period one and can also be hidden from tax authorities. It is shown that a greater tax...

Persistent link: https://www.econbiz.de/10009645647

Taxes and Pensions

Diamond, Peter A. - CESifo - 2009

Pension benefit rules depend on individual history far more than taxes do, and age plays a much larger role in pension determination than in tax determination. Apart from some simulation studies, theoretical studies of optimal tax design typically contain neither a mandatory pension system nor...

Persistent link: https://www.econbiz.de/10005000379

Tax Deductibility of Commuting Expenses and Residential Land Use with more than one Center

Wrede, Matthias - CESifo - 2003

This paper analyzes the treatment of commuting expenses by the income tax code from a normative and a positive point of view within a continuous space framework with endogenous residence choices and perfect labor mobility. As commuting expenses should never be deductible from the income tax base...

Persistent link: https://www.econbiz.de/10005406069

Are Income and Consumption Taxes ever really Equivalent? Evidence from a Real-Effort Experiment with Real Goods

Blumkin, Tomer; Ruffle, Bradley J.; Ganun, Yosef - CESifo - 2008

The public finance literature demonstrates the equivalence between consumption and labor income (wage) taxes. We construct an environment in which individuals make real labor-leisure choices and spend their earned income on real goods. We use this experimental framework to test whether a labor...

Persistent link: https://www.econbiz.de/10005406166

Tax Progressivity and Tax Evasion

Goerke, Laszlo - CESifo - 2003

More progressive income taxes raise employment in models of imperfectly competitive labour markets. However, this prediction is not robust to modifications of the analytical structure. For example, in an efficiency wage setting, more progressive taxes reduce profits. This induces firms to exit...

Persistent link: https://www.econbiz.de/10005406269

Labor Income Responds Differently to Income-Tax and Payroll-Tax Reforms

Lehmann, Etienne; Marical, François; Rioux, Laurence - CESifo - 2012

We estimate the responses of gross labor income with respect to marginal and average net-of-tax rates in France over the period 2003-2006. We exploit a series of reforms to the income-tax and payroll-tax schedules affecting individuals who earn less than twice the minimum wage. Our estimate for...

Persistent link: https://www.econbiz.de/10010586075