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provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … bound on optimal taxes: even for welfare functions that do not value redistribution, marginal tax rates are positive for all …
Persistent link: https://www.econbiz.de/10011280819
This paper examines the question of achieving a societal consensus around redistributive policies. Its extent is measured by the degree of work participation among the different skill classes that populate the economy. This consensus is driven both by the material incentives and heterogeneous...
Persistent link: https://www.econbiz.de/10009765042
We examine preferences for redistribution inherent in Swedish tax policy 1971-2012 using the inverse optimal tax …
Persistent link: https://www.econbiz.de/10011566489
Regional productivity differences provide scope for productivity-enhancing labor mobility. Redistribution reduces …, productivity-enhancing migration margin, we determine how regional inequality and labor mobility affect optimal redistribution …
Persistent link: https://www.econbiz.de/10010469268
We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring education. Market remuneration of agents depends on both...
Persistent link: https://www.econbiz.de/10013390911
optimal income tax policy using theory and calibration. A positive association between life expectancy and income counteracts … the well-known static pattern of declining marginal utility. As a result, the mechanical value of redistribution is … effects of the mechanical value of redistribution dominate, and the optimal marginal tax rates fall by up to 10 percentage …
Persistent link: https://www.econbiz.de/10014382962
This paper studies the aggregate and distributional implications of Markov-perfect taxspending 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/10009127740
Persistent link: https://www.econbiz.de/10003599393
A long-standing concern in the literature has been that household mobility implies a serious threat to the viability of redistributive taxation. This paper considers the effects of deferred integration of migrants into the redistributive system of the target country. In a model of symmetric...
Persistent link: https://www.econbiz.de/10003300928
The Netherlands has a unique tradition in which all major Dutch political parties provide CPB Netherlands Bureau for Economic Policy Analysis with highly detailed proposals for the tax benefit system in every national election. This information allows us to quantitatively measure the...
Persistent link: https://www.econbiz.de/10011458047