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What structure of income taxation maximizes the social benefits of redistribution while minimizing the social harm associated with distorting the allocation of labor input? Many authors have advocated scrapping the current tax system, which redistributes primarily via marginal tax rates that...
Persistent link: https://www.econbiz.de/10011165649
This paper considers the canonical sequential screening model and shows that when the agent has an ex post outside option, the principal does not benefit from eliciting the agent's information sequentially. Unlike in the standard model without ex post outside options, the optimal contract is...
Persistent link: https://www.econbiz.de/10009359487
This paper analyzes the problem of optimal taxation of top labour incomes. We develop a model where top incomes respond to marginal tax rates through three channels: (1) the standard supply-side channel through reduced economic activity, (2) the tax avoidance channel, (3) the compensation...
Persistent link: https://www.econbiz.de/10009364998
Social insurance for the elderly is judged responsible for the widely observed trend towards early retirement. In a world of laissez-faire or in a first-best setting, there would be no such trend. However, when first-best instruments are not available, because health and productivity are not...
Persistent link: https://www.econbiz.de/10005662373
emigration life cycle since the 1960s, and, except for Africa, emigration rates have been level or even declining since a peak in … estimates the economic and demographic fundamentals driving these Third World emigration life cycles to the United States since … projections imply that pressure on Third World emigration over the next two decades will not increase. It also suggests that …
Persistent link: https://www.econbiz.de/10004972165
This paper documents a stylized fact: the Third World has been undergoing an emigration life cycle since the 1960s, and …, except for Africa, emigration rates have been level or even declining since a peak in the late 1980s and the early 1990s. The … fundamentals driving these emigration life cycles to the United States since 1970 – income and education gaps between the US and …
Persistent link: https://www.econbiz.de/10004966280
Given its signiÖcance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper o§ers a simple and transparent analysis of its main characteristics. We fully characterize optimal tax parameters for the cases in which budget sets are convex...
Persistent link: https://www.econbiz.de/10009385840
While acknowledging the importance of fairness and the need to avoid creating disincentives in the design of tax reform, the Henry Review recommends a simplified Personal Income Tax and child payments withdrawn on a single family income test. This paper shows that the proposed reforms would...
Persistent link: https://www.econbiz.de/10008483747
With many countries considering the adoption of a system of earned income tax credits, it is useful to analyze how different types of credits affect labor supply and earnings. This paper focuses on a 1999 reform to the UK tax credit system, which increased the value of the credit and reduced the...
Persistent link: https://www.econbiz.de/10004971317
This paper presents for the .rst time the properties of optimal piece-wise linear tax systems for two-earner households, based on joint and individual incomes respectively. A key contribution is the analysis of the interaction of second earner wage di¤erences, variation in prices of bought-in...
Persistent link: https://www.econbiz.de/10011079132