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Reducing the Excess Burden of Subsidizing the Stork : Joint Taxation, Individual Taxation, and Family Tax Splitting
Meier, Volker - 2008
Analyzing a homogenous household setting with endogenous fertility and endogenous labor supply, we demonstrate that moving from joint taxation to individual taxation and adapting child benefits so as to keep fertility constant entails a Pareto improvement. The change is associated with an...
Persistent link: https://www.econbiz.de/10012768348
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Marginal Deadweight Loss When the Income Tax is Nonlinear
Blomquist, Soren - 2010
Almost all theoretical work on how to calculate the marginal deadweight loss has been done for linear taxes and for variations in linear budget constraints. This is quite surprising since most income tax systems are nonlinear, generating nonlinear budget constraints. Instead of developing the...
Persistent link: https://www.econbiz.de/10013143343
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Optimal Redistributive Taxation with Both Extensive and Intensive Responses
Jacquet, Laurence - 2011
We derive a general optimal income tax formula when individuals respond along both the intensive and extensive margins and when income effects can prevail. Individuals are heterogeneous across two dimensions: their skill and their disutility of participation. Preferences over consumption and...
Persistent link: https://www.econbiz.de/10013131346
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Optimal Redistributive Taxation with Both Labor Supply and Labor Demand Responses
Jacquet, Laurence - 2012
This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework where (voluntary) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment elasticity rule. This rule depends on the...
Persistent link: https://www.econbiz.de/10013108042
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Optimal Income Taxation in Unionized Labor Markets
Hummel, Albert Jan - 2018
This paper extends the Diamond (1980) model with labor unions to study optimal income taxation and to analyze whether unions can be desirable for income redistribution. Unions bargain with firms over wages in each sector and firms unilaterally determine employment. Unions raise the efficiency...
Persistent link: https://www.econbiz.de/10012910614
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Is Prescott Right? Welfare State Policies and the Incentives to Work, Learn and Retire
Jacobs, Bas - 2008
This paper bolsters Prescott's (2004) claim that high taxes are responsible for lacklustre labor market performance in continental European countries. We develop a lifecycle model with endogenous skill formation, endogenous labor supply, and endogenous retirement. Labor taxation distorts not...
Persistent link: https://www.econbiz.de/10012772137
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Public Finance in a Nutshell : A Cobb Douglas Teaching Tool for General Equilibrium Tax Incidence and Excess Burden
Fullerton, Don - 2017
To help first- or second-year graduate students in economics apply their theoretical training, this paper shows how to solve a simple and intuitive computable general equilibrium (CGE) model using a calculator. Because this simplified Harberger model uses Cobb Douglas functional forms for...
Persistent link: https://www.econbiz.de/10012964062
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The Welfare Loss from Differential Taxation of Sectors in Germany
Radulescu, Doina Maria - 2008
In the spirit of Harberger, we apply a dynamic computable general equilibrium (CGE) model and estimate the excess burden stemming from the tax-induced distortion in the allocation of capital across the corporate and the non-corporate sectors in Germany. In doing so, we perform a counterfactual...
Persistent link: https://www.econbiz.de/10012769707
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VAT Notches
Liu, Li - 2015
taxable income to an indirect tax setting. We bring the theory to the data, using linked administrative VAT and corporation … tax records in the UK from 2004-2009. Consistently with the theory, voluntary registration is positively related to the … transactions, again consistently with the theory. We provide an estimate of the elasticity of the VAT tax base in the range of 0 …
Persistent link: https://www.econbiz.de/10013021432
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The Efficiency Loss of Capital Income Taxation Under Imperfect Loss Offset Provisions
Ahsan, Syed M.; Tsigaris, Panagiotis - 2021
The importance of capital loss offset provisions in a world of risk is well documented in the tax literature. However, the potential deadweight losses owing to imperfect offset has not been fully explored. This paper develops a framework whereby that investigation can be carried out and utilizes...
Persistent link: https://www.econbiz.de/10013316603