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We solve the problem of a social planner who seeks to minimize inequality via transfers with a fixed public budget in a distribution of exogenously given incomes. The appropriate solution method depends on the objective function: If it is convex, as in the case of the absolute mean deviation, it...
Persistent link: https://www.econbiz.de/10011513031
Constructing measures of post-tax income inequality that are consistent with national accounts requires the allocation of the entirety of government expenditure to individuals. About half of government expenditure in the United States takes the form of in-kind collective expenditure (e.g.,...
Persistent link: https://www.econbiz.de/10012816827
life-cycle model, we find that redistribution by taxes and transfers off sets 54% of the inequality in lifetime earnings …
Persistent link: https://www.econbiz.de/10012108653
Using a laboratory experiment, we present first evidence that social image concerns causally reduce the take-up of an individually beneficial transfer. Our design manipulates the informativeness of the take-up decision by varying whether transfer eligibility is based on ability or luck, and how...
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People with higher-incomes tend to support less redistribution than lower-income people. This has been attributed not … each of these mechanisms and compare their mediating roles in the relationship between status and redistribution. In our … primary mechanism underlying self-serving differences in support for redistribution. …
Persistent link: https://www.econbiz.de/10014477403
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Individuals vary considerably in how much they earn during their lifetimes. This study examines the role of the tax-and-transfer system in mitigating such inequalities, which could otherwise lead to disparities in living standards. Utilizing a life-cycle model, we determine that taxes and...
Persistent link: https://www.econbiz.de/10014427523
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