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on labor income. If the after-tax real return is –5 percent, as it was in the 1974–1978 period, welfare is approximately …
Persistent link: https://www.econbiz.de/10005367647
proportional to total income, and they are used for government consumption, which is exogenous, and for lump-sum transfers, whose … maximizes his equilibrium utility. We calibrate the model and its income and wealth distribution to match postwar U.S. data …
Persistent link: https://www.econbiz.de/10005367648
This paper presents a full characterization of the equilibrium value set of a Ramsey tax model. More generally, it develops a dynamic programming method for a class of policy games between the government and a continuum of consumers. By selectively incorporating Euler conditions into a strategic...
Persistent link: https://www.econbiz.de/10005367735
construct a general equilibrium model of endogenous growth in which there is heterogeneity in income and in the tax rates. We …
Persistent link: https://www.econbiz.de/10005372780
productivity, to study the efficient degree of consumption inequality in the long run. In our environment a utilitarian planner … allows for consumption inequality even when labor productivity is public information. We show that adding private information …
Persistent link: https://www.econbiz.de/10008636203
. Of particular interest to EU ministers is taxation of mobile factors like capital. Mendoza and Tesar (MT) use a game … capital income and adjust other tax rates to keep revenues constant? MT predict very large welfare gains (losses) to tax …
Persistent link: https://www.econbiz.de/10004993830
inequality and slightly reduce aggregate output. Decreasing progressivity of the income tax can generate large increases in …Entrepreneurship is a key determinant of investment, saving, wealth holdings, and wealth inequality. We study the … entrepreneurs, and that matches very well the extreme degree of wealth inequality observed in the U.S. data. We find that the …
Persistent link: https://www.econbiz.de/10004994150
U.S. stock prices have increased much faster than gross domestic product GDP) in the postwar period. Between 1962 and 2000, corporate equity value relative to GDP nearly doubled. In this paper, we determine what standard growth theory says the equity value should be in 1962 and 2000, the two...
Persistent link: https://www.econbiz.de/10005726728
In this paper, we consider an environment in which agents’ productivities are private information, potentially multi-dimensional, and follow arbitrary stochastic processes. We allow for arbitrary incentive-compatible and physically feasible tax schemes. We prove that it is typically Pareto...
Persistent link: https://www.econbiz.de/10005726733
revenue-neutral tax reforms: a proportional consumption tax, a proportional income tax, a progressive consumption tax, and a …
Persistent link: https://www.econbiz.de/10005726740