Showing 1 - 10 of 463
We examine the optimal financing of infrastructure when governments have limited financial commitment and can expropriate rents from private sector firms that manage infrastructure. While private firms need incentives to implement projects well, governments need incentives to limit...
Persistent link: https://www.econbiz.de/10013334350
We characterize optimal policies in a multidimensional nonlinear taxation model with bunching. We develop an empirically relevant model with cognitive and manual skills, firm heterogeneity, and labor market sorting. The analysis of optimal policy is based on two main results. We first derive an...
Persistent link: https://www.econbiz.de/10013210043
Stimulus checks have become an increasingly important policy tool in recent U.S. recessions. How does the households' marginal propensity to spend (MPX) vary as checks become larger? To quantify this size-dependence in the MPX, we augment a canonical model of durable spending by introducing a...
Persistent link: https://www.econbiz.de/10014468280
In this short paper we show that progressive income taxes distort hiring and wages when firms have labor market power. From a firm's perspective, raising pre-tax wages increases employment by less when taxes are progressive as less of the pre-tax wage is paid to workers. Understanding this when...
Persistent link: https://www.econbiz.de/10014447293
We give an overview of the "German model" of industrial relations. We organize our review by focusing on the two pillars of the model: sectoral collective bargaining and firm-level codetermination. Relative to the United States, Germany outsources collective bargaining to the sectoral level,...
Persistent link: https://www.econbiz.de/10013362031
treatment services and improving treatment of mental illness in late adolescence substantially improve mental health and welfare …
Persistent link: https://www.econbiz.de/10014528393
Analyzing the universe of federal environmental regulations in the U.S., we construct a measure of regulations--direct taxes on pollution. Analyzing the universe of firms' investor disclosures, we construct a measure of material environmental concerns--indirect taxes on pollution. These two...
Persistent link: https://www.econbiz.de/10015056178
Government debt can be rolled over forever without primary surpluses in some stochastic economies, including some economies that are dynamically efficient. In an overlapping-generations model with constant growth rate, g, of labor-augmenting productivity, and with shocks to the durability of...
Persistent link: https://www.econbiz.de/10013435116
We use an instrumental-variables estimator reliant on variation in congressional representation to analyze the effects of federal aid to state and local governments across all four major pieces of COVID-19 response legislation. Through September 2021, we estimate that the federal government...
Persistent link: https://www.econbiz.de/10013334387
an increase in economic activity in industry-province pairs that were the focus of the subsidy program, and positive … equilibrium model, we then assess the program's impacts. Based on the calibrated model we find that, in the long run, the subsidy … the country. These modest longer-term effects are due to the ability of households to migrate in response to the subsidy …
Persistent link: https://www.econbiz.de/10014322681