Showing 1 - 10 of 159
This paper examines the question of achieving a societal consensus around redistributive policies. Its extent is measured by the degree of work participation among the different skill classes that populate the economy. This consensus is driven both by the material incentives and heterogeneous...
Persistent link: https://www.econbiz.de/10010877788
In this paper we allude to a novel role played by the non-linear income tax system in the presence of adverse selection in the labor market due to asymmetric information between workers and firms. We show that an appropriate choice of the tax schedule enables the government to affect the wage...
Persistent link: https://www.econbiz.de/10010888445
There is clear evidence that fairness plays a role in redistribution. Individuals want to compensate others for their …
Persistent link: https://www.econbiz.de/10009221559
We analyse the question of optimal taxation in a dual economy, when the government is concerned about the distribution of labour income. Income inequality is caused by the presence of sunk capital investments, which creates a ‘good jobs’ sector due to the capture of quasi-rents by trade...
Persistent link: https://www.econbiz.de/10005765638
Regional productivity differences provide scope for productivity-enhancing labor mobility. Redistribution reduces … relocation incentives through higher taxes or lower transfers. Combining an intensive labor supply margin with an extensive …, productivity-enhancing migration margin, we determine how regional inequality and labor mobility affect optimal redistribution …
Persistent link: https://www.econbiz.de/10011120471
Large and growing levels of public debt in the United States, United Kingdom, Japan and the Euro Area raise new interest in the cross-country effects of a large open economy’s deficits. We consider a dynamic optimising model with costly tax collection and exogenously given public spending and...
Persistent link: https://www.econbiz.de/10009150638
This paper develops an overlapping-generations model with heterogeneous agents in terms of earning ability and cash-in-advance constraint. It shows that tax policy cannot fully replicate or neutralize the redistributive implications of monetary policy. While who gets the extra money becomes...
Persistent link: https://www.econbiz.de/10009645639
This paper empirically studies the effects of fiscal policy shocks on private consumption. Further, it tries to determine if the level of government bond yield and the unemployment rate affect that relationship. We use yearly data between 1970 and 2000 for thirty-eight countries, of which half...
Persistent link: https://www.econbiz.de/10005181323
We study the impact of heterogeneous saving behavior on the distributional effects of public investment. A capital tax is levied to finance productive public capital in an economy with two types of households: high income households who save dynastically and middle income households who save for...
Persistent link: https://www.econbiz.de/10010754656
home computers and enrollment in transferable courses and actual transfers to 4-year colleges. The results from the field … clear for the effects on actual transfers to 4-year colleges and the probability of using a computer to search for college …
Persistent link: https://www.econbiz.de/10010888455