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How are optimal taxes affected by the presence of superstar phenomena at the top of the earnings distribution? To answer this question, we extend the Mirrlees model to incorporate an assignment problem in the labor market that generates superstar effects. Perhaps surprisingly, rather than...
Persistent link: https://www.econbiz.de/10012457344
"reform-specific elasticities" that can be targeted to empirical estimates from existing reforms. I extend the model to an OLG …
Persistent link: https://www.econbiz.de/10012457490
A notable feature and principal virtue of Tax by Design is its system-wide perspective on different elements of the tax system. This review essay builds on this trait and offers a more explicit foundation for the report's general approach, drawing on a distribution-neutral methodology that is...
Persistent link: https://www.econbiz.de/10012461443
zero- or negative-cost environmental tax reform are enhanced to the extent that environmental tax reforms shift the tax …
Persistent link: https://www.econbiz.de/10012473769
This paper examines the optimal setting of environmental taxes in economies where other, distortionary taxes are present. We employ analytical and numerical models to explore the degree to which, in a second best economy, optimal environmental tax rates differ from the rates implied by the...
Persistent link: https://www.econbiz.de/10012474010
This paper characterizes the welfare gains from redistributive taxation and social insurance in an environment where the private sector provides partial insurance. We analyze stylized models in which adverse selection, pre-existing information, or imperfect optimization in private insurance...
Persistent link: https://www.econbiz.de/10012464244
This paper examines potential environmental tax policy reforms. It focuses primarily on a carbon tax, but also more briefly considers a range of other possible changes. These include revising or eliminating various energy and environmental tax credits and deductions (many of which might become...
Persistent link: https://www.econbiz.de/10012456372
decompose the gains arising from each element of tax reform, starting from a simple baseline system, as the available tax …
Persistent link: https://www.econbiz.de/10012457886
This paper studies optimal dynamic tax policy under the threat of political reform. A policy will be reformed ex post … if a large enough political coalition supports reform; thus, credible policies are those that will continue to attract … enough political support in the future. If the only credible reform threat is to fully equalize consumption, we find that …
Persistent link: https://www.econbiz.de/10012458621
This paper analyzes the optimal treatment of tax expenditures. It develops an optimal tax model where individuals derive utility from spending on a contribution' good such as charitable giving. The contribution good has also a public good effect on all individuals in the economy. The government...
Persistent link: https://www.econbiz.de/10012470670