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A closer look at the tax incidence of instant lottery games: an analysis by price point

Garrett, Thomas A. - Federal Reserve Bank of St. Louis - 2011

The tax incidence of different price-point instant lottery games is examined. Theoretical reasons exist for expecting higher-priced instant lottery games to be less regressive than lower-priced instant games. Using game-level data from a sample of states, the empirical results show that...

Persistent link: https://www.econbiz.de/10009001753

Quantifying the shadow economy: measurement with theory

Gomis-Porqueras, Pere; Peralta-Alva, Adrian; Waller, … - Federal Reserve Bank of St. Louis - 2011

We construct a dynamic, general equilibrium model of tax evasion where agents choose to report some of their income. Unreported income requires using a payment method that avoids recordkeeping – cash. Trade using cash to avoid taxes is the theoretical measure of the shadow economy from our...

Persistent link: https://www.econbiz.de/10009141707

Local price variation and the tax incidence of state lotteries

Garrett, Thomas A.; Kolesnikova, Natalia - Federal Reserve Bank of St. Louis - 2010

This paper explores the seemingly innocuous practice of ignoring the local price vector in empirical models of lottery demand. We argue using consumer theory that local consumption prices should be included and that the failure to consider local prices results in income elasticity of lottery...

Persistent link: https://www.econbiz.de/10008676424

An evaluation of the employment effects of barriers to outsourcing

Bandyopadhyay, Subhayu; Marjit, Sugata; Yang, Lei - Federal Reserve Bank of St. Louis - 2010

Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who “export” jobs through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets where the US has a comparative advantage feature...

Persistent link: https://www.econbiz.de/10008676425

Optimal auditing and insurance in a dynamic model of tax compliance

Ravikumar, B.; Zhang, Yuzhe - Federal Reserve Bank of St. Louis - 2011

We study the optimal auditing of a taxpayer’s income in a dynamic principal- agent model of hidden income. Taxpayers in our model initially have low income and stochastically transit to high income that is an absorbing state. A low-income taxpayer who transits to high income can underreport...

Persistent link: https://www.econbiz.de/10009292908

Monetary policy, the tax code, and the real effects of energy shocks

Gavin, William T.; Keen, Benjamin D.; Kydland, Finn E. - Federal Reserve Bank of St. Louis - 2013

This paper develops a monetary model with taxes to account for the apparently asymmetric and time-varying effects of energy shocks on output and hours worked in post-World War II U.S. data. In our model, the real effects of an energy shock are amplified when the monetary authority responds to...

Persistent link: https://www.econbiz.de/10010662819

Intergenerational policy and the measurement of tax incidence

Conesa, Juan Carlos; Garriga, Carlos - Federal Reserve Bank of St. Louis - 2013

Policymakers often use measures of tax incidence (generational accounts) as criteria for policy selection. We use a quantitative model of optimal intergenerational policy to evaluate the ability of the tax incidence metric to capture the identity of recipients and contributors and the magnitudes...

Persistent link: https://www.econbiz.de/10010640522

Generational policy and the macroeconomic measurement of tax incidence

Conesa, Juan Carlos; Garriga, Carlos - Federal Reserve Bank of St. Louis - 2009

In this paper we show that the generational accounting framework used in macroeconomics to measure tax incidence can, in some cases, yield inaccurate measurements of the tax burden across age cohorts. This result is very important for policy evaluation, because it shows that the selection of tax...

Persistent link: https://www.econbiz.de/10004973893

Estate taxation with warm-glow altruism

Garriga, Carlos; Sánchez-Losada, Fernando - Federal Reserve Bank of St. Louis - 2009

implemented by the market with estate and labor-income subsidies and a capital-income tax. In the absence of lump-sum taxation … differs from Pigovian taxation since the government's ability to correct the external effects is limited. Finally, we show …

Persistent link: https://www.econbiz.de/10004973902

Indirect taxation and the welfare effects of altruism on the optimal fiscal policy

Garriga, Carlos; Sánchez-Losada, Fernando - Federal Reserve Bank of St. Louis - 2009

taxation (consumption and estate taxes) with important welfare implications. We use three different altruistic approaches (warm … ability to use indirect taxation to mimic lump-sum taxation and to implement the first-best outcome in the long-run. This … generations economy, where long-run welfare is suboptimal and indirect taxation is irrelevant. …

Persistent link: https://www.econbiz.de/10008583257