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fairness principles, namely equality of opportunity and freedom from poverty, into a joint measure of unfair inequality. Two … inequality. Second, average unfair inequality doubles when complementing the ideal of an equal opportunity society with poverty …
Persistent link: https://www.econbiz.de/10012912680
This paper studies the aggregate and distributional implications of Markov-perfect tax-spending policy in a neoclassical growth model with capitalists and workers. Focusing on the long run, our main findings are: (i) it is optimal for a benevolent government, which cares equally about its...
Persistent link: https://www.econbiz.de/10013125070
We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is independent of the social welfare function and...
Persistent link: https://www.econbiz.de/10013020515
The paper studies the effect that skilled labour mobility has on efficient education policy. The model is one of two periods in which a representative taxpayer decides on labour, education, and saving. The government can only use linear tax and subsidy instruments. It is shown that the mobility...
Persistent link: https://www.econbiz.de/10013316063
To analyze the optimal social insurance package, we set up a two-period life-cycle model with risky human capital investment in which the government has access to labor taxation, education subsidies and capital taxation. Social insurance is provided by redistributive labor taxation. Moreover,...
Persistent link: https://www.econbiz.de/10013316119
Altruistic parents may transfer resources to their offspring by providing education, and by leaving bequests. We show that in the presence of wage taxation, a small bequest tax may improve efficiency in an overlapping-generations framework with only intended bequests, by enhancing incentives of...
Persistent link: https://www.econbiz.de/10013318327
Using a calibrated overlapping generations model we quantify the welfare gains of an age dependent income tax. Agents face uncertainty regarding future abilities and can by saving transfer consumption across periods. The welfare gain of switching from an age-independent to an age-dependent...
Persistent link: https://www.econbiz.de/10008727282
Persistent link: https://www.econbiz.de/10013464042
China is undergoing a campaign which is called “The Targeted Poverty Alleviation Policy” to eradicate extreme poverty … from rural China until 2020. Though poverty in rural China has been studied intensively in different objective dimensions …, little attention has been paid to poverty line settings and subjective poverty, which are hinged to the policy effects. In …
Persistent link: https://www.econbiz.de/10014503956
examines whether, and to what degree, indicators of material deprivation, subjective poverty and subjective well-being are …
Persistent link: https://www.econbiz.de/10010999508