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in time. In politico-economic equilibrium, more inequality (in terms of the skewedness of the distribution) yields a …
Persistent link: https://www.econbiz.de/10005791379
coefficient, but is exogenous to any behavioral response. Analyzing the effect of this redistribution index on inequality, I find … redistribution and inequality. … create a “simulated tax redistribution index”, which captures the mechanical impact of the changes in tax policy on the gini …
Persistent link: https://www.econbiz.de/10004970062
and benefits of redistribution through taxes, land reform or public schooling: such policies simultaneously depress …’ rent-seeking abilities, as well as with the gap between rich and poor. It is not income inequality per se that matters …, however, but inequality in the relative distribution of earning and political power. For each of the three channels of …
Persistent link: https://www.econbiz.de/10005123982
The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the disappointingly small effect of many past reform measures on unemployment; and the political difficulties in implementing more extensive reform programmes. We argue that the heart of...
Persistent link: https://www.econbiz.de/10005123912
redistribution results in more post-tax inequality. In general, optimal taxation will either imply that the redistribution paradox is … suffers from moral hazard effects. Adopting this view, the paper studies the trade-off between average income and inequality … present or that the economy operates at a point of its efficiency frontier where more inequality implies a lower average …
Persistent link: https://www.econbiz.de/10005067443
This Paper studies the design of education policies in a setting of successive generations with heterogeneous individuals (high and low earning ability). Parents’ investment in education is motivated by warm-glow altruism and determines the probability that a child has high ability. Education...
Persistent link: https://www.econbiz.de/10005498169
The Ramsey optimal taxation theory implies that the tax rate on capital income should be zero in the long run. This result holds even if the social planner only cares about workers that do not hold assets, or if the planner only cares about any other group in the economy. This paper demonstrates...
Persistent link: https://www.econbiz.de/10005792415
If redistribution is distortionary, and if the income of skilled workers is due to knowledge-intensive activities and … reduction reduces statis inefficiency. On the other hand, standard redistribution also reduces the level of R&D because it … that standard redistribution always dominates limitations to IPRs. …
Persistent link: https://www.econbiz.de/10005791837
the effects of two different constitutions (commitment or no commitment in tax policy), as well as income inequality …
Persistent link: https://www.econbiz.de/10005792126
In a number of high-income countries over the past few decades there has been a large growth in income inequality and … an appropriate response to rising inequality is a shift towards a more progressive multi-bracket income tax system, with …
Persistent link: https://www.econbiz.de/10011079145