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Di Tella, Sebastian; Malgieri, Cedomir; Tonetti, Christopher - National Bureau of Economic Research - 2025

We study optimal policy when heterogeneous markups reflect compensation for uninsurable persistent idiosyncratic risk. The optimal labor tax keep rate equals (1) the aggregate markup times (2) workers' consumption share divided by their Pareto weight. Markups correctly capture the private cost...

Persistent link: https://www.econbiz.de/10015409809

Optimal Income Taxation

Kaplow, Louis - National Bureau of Economic Research - 2022

This article explores subjects in optimal income taxation characterized by recent research interest, practical importance in light of concerns about inequality, potential for misunderstanding, and prospects for advancement. Throughout, the analysis highlights paths for further investigation....

Persistent link: https://www.econbiz.de/10013334417

Optimal Monetary Policy with Redistribution

La'O, Jennifer; Morrison, Wendy A. - National Bureau of Economic Research - 2024

We study optimal monetary policy in a general equilibrium economy with heterogeneous agents and nominal rigidities. Households differ in type-specific, state-contingent labor productivity and initial firm ownership, yet markets are complete. The fiscal authority has access to a linear tax...

Persistent link: https://www.econbiz.de/10015072863

Growth Elasticities of Poverty Reduction

Ravallion, Martin - National Bureau of Economic Research - 2022

poverty with respect to changes in the mean of the distribution of income, thus analytically linking the poverty measures to … key macroeconomic aggregates. Numerous insights are found in Kakwani's elasticities. However, the literature on poverty … and growth since then has revealed that the impacts of economic growth on poverty, as observed in practice, can be …

Persistent link: https://www.econbiz.de/10013362055

The Optimal Taxation of Unskilled Labor with Job Search and Social Assistance

Boone, Jan - 2003

In order to explore the optimal taxation of low-skilled labor, we extend the standard model of optimal non-linear income taxation in the presence of quasi-linear preferences in leisure by allowing for involuntary unemployment, job search and an exogenous welfare benefit. In trading off...

Persistent link: https://www.econbiz.de/10012468913

How Does Tax Progressivity and Household Heterogeneity Affect Laffer Curves?

Holter, Hans A. - 2014

How much additional tax revenue can the government generate by increasing labor income taxes? In this paper we provide a quantitative answer to this question, and study the importance of the progressivity of the tax schedule for the ability of the government to generate tax revenues. We develop...

Persistent link: https://www.econbiz.de/10012457978

High Marginal Tax Rates on the Top 1%? Lessons from a Life Cycle Model with Idiosyncratic Income Risk

Kindermann, Fabian - 2014

In this paper we argue that very high marginal labor income tax rates are an effective tool for social insurance even when households have preferences with high labor supply elasticity, make dynamic savings decisions, and policies have general equilibrium effects. To make this point we construct...

Persistent link: https://www.econbiz.de/10012458064

Enlisting Employees in Improving Payroll-Tax Compliance : Evidence from Mexico

Kumler, Todd - 2013

A growing body of research suggests that difficulties in collecting taxes are an important constraint on economic performance in developing countries. Evidence from rich countries points to third- party reporting -- in particular, employer reports of employees' wages -- as a potential remedy. To...

Persistent link: https://www.econbiz.de/10012459276

Entrepreneurial Taxation with Endogenous Entry

Scheuer, Florian - 2013

This paper analyzes Pareto optimal non-linear taxation of profits and labor income in a private information economy with endogenous firm formation. Individuals differ in both their skill and their cost of setting up a firm, and choose between becoming workers and entrepreneurs. I show that a tax...

Persistent link: https://www.econbiz.de/10012459427

Optimal Capital Versus Labor Taxation with Innovation-Led Growth

Aghion, Philippe - 2013

Chamley (1986) and Judd (1985) showed that, in a standard neoclassical growth model with capital accumulation and infinitely lived agents, either taxing or subsidizing capital cannot be optimal in the steady state. In this paper, we introduce innovation-led growth into the Chamley-Judd...

Persistent link: https://www.econbiz.de/10012459575