reduce the tax rate on capital income. The third model introduces differential rates of return to capitals of different sizes …

We study the impact of heterogeneous saving behavior on the distributional effects of public investment. A capital tax … is levied to finance productive public capital in an economy with two types of households: high income households who … save dynastically and middle income households who save for retirement. We find that inequality is reduced the higher the …

This paper provides a household-level perspective on the rise of global saving and wealth since the 1980s. We calculate … asset-specific saving flows and capital gains across the wealth distribution for the G3 economies – the U.S., Europe, and … China. In the past four decades, global saving inequality has risen sharply. The share of household saving flows coming from …

If there is a means tested basic income for old age, households will tend to reduce precautionary savings to an … income types where compulsory savings are found to be Pareto improving only up to a point. Increases in contribution rates … via the means tested basic income. Using these results in a pay-as-you-go framework, we show that an unfunded pensions …

Rising income inequality since the 1980s in the United States has generated a substantial increase in saving by the top … of the income distribution, which we call the saving glut of the rich. The saving glut of the rich has been as large as … the global saving glut, and it has not been associated with an increase in investment. Instead, the saving glut of the …

This paper analyzes optimal linear taxes on labor income and savings in a standard two-period life-cycle model with … endogenous leisure demands in both periods and non-insurable income risks. Households are subject to skill shocks in both periods … taxes reduce labor supply distortions on second-period labor supply, since second-period labor supply and saving are …

This paper explores the implications on trade and wage inequality of introducing financial capital or credit in the … standard Ricardian model of production, where a given amount of start-up credit is used to employ sector specific skilled and … Jones (1971) in a new Ricardian model (NRM) with credit and two types of labour. With an entirely different mechanism from …

Credit rationing in the presence of asset inequality affects production and trade pattern in this paper, but not in the … more equal asset distribution may contract the output of the credit intensive sector as redistribution to the bottom of the … out the possibility that an economy with relatively equal distribution of asset ownership may import capital or credit …

This paper examines the effects of Islamic banking on the causal linkages between credit and GDP by comparing two sets … analysis provides evidence of long-run causality running from credit to GDP in countries with Islamic banks only. This is …