We estimate household equivalence scales using income satisfaction data from the German Socio-Economic Panel. We extend … previous studies applying this approach by taking reference income into account. This allows separating needs-based from … reference effects in the determination of income satisfaction. We show that this adjustment helps to overcome a bias causing an …

Using detailed tax data from the Swiss canton of Bern, I examine how changes in wealth are related to income risk. I … find that only among elderly individuals high kurtosis of income risk may be positively correlated with wealth accumulation …. Additionally, I document that a substantial share of taxpayers have negative net wealth. While wealth and income are positively …

The public finance literature has modeled income shifting as a decision along the intensive margin even though it … margin has crucial policy implications: the classical distinction between income creation and income shifting breaks down. We … supply elasticities, and costs of income shifting. In the most empirically plausible scenario when people who shift easily …

Existing studies of trust formation in U.S. metropolitan areas have found that trust is lower when there is more income … inequality and greater racial fragmentation. I add to this literature by examining the role of income inequality between racial … groups (racial income inequality). I find that greater racial income inequality reduces trust. Also, racial fragmentation is …

Income inequality in Germany has been continuously increasing during the past 20 years. In general, this is understood … affect per capita incomes, which has repercussions for the income distribution even if wages remain constant. The aim of this …

The paper uses a veil of ignorance approach and income distribution data of developed countries to arrive at inequality … corrected income rankings. While a risk neutral individual (based on year 2000 data) would have preferred to be born into the US … make several European countries look preferable. The paper also sheds light on the risk corrected average income on a …

system versus different provisions of public services when decisions are decentralized. Income heterogeneity across …

Empirically, the income share is procyclical for the low-income groups and acyclical for the top 5%. We find that …