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taxes on energy-inefficient products yield larger welfare gains than any information policy. We also document an important … effectiveness of taxes. …
Persistent link: https://www.econbiz.de/10012206579
Non-pecuniary incentives motivated by insights from psychology ("nudges") have been shown to be effective tools to change behavior in a variety of fields. An often unanswered question relevant for public policy is whether these promising interventions can be scaled up. In cooperation with a...
Persistent link: https://www.econbiz.de/10012267142
-bias through a combination of time-variant marginal labor income taxes and savings subsidies. Furthermore, the optimal policy mix …
Persistent link: https://www.econbiz.de/10009559801
"Sin taxes" are high on the political agenda in the global fight against obesity. According to theory, they are welfare … that consumers with low self-control reduce purchases less strongly than consumers with high self-control when taxes go up …, but increase purchases to a similar extent when taxes go down. Hence, we document an asymmetry in the responsiveness to …
Persistent link: https://www.econbiz.de/10012255846
A common assumption in the optimal taxation literature is that the social planner maximizes a welfarist social welfare function with weights decreasing with income. However, high transfer withdrawal rates in many countries imply very low weights for the working poor in practice. We reconcile...
Persistent link: https://www.econbiz.de/10011721431
This paper examines the implications of habit formation in private and public consumption for the Pareto-efficient provision of public goods, based on a two-period model with nonlinear taxation. If the public good supply is time-invariant, the presence of habit formation generally alters the...
Persistent link: https://www.econbiz.de/10011587590
We study the optimal design of student financial aid as a function of parental income. We derive optimal financial aid formulas in a general model. For a simple model version, we derive mild conditions on primitives under which poorer students receive more aid even without distributional...
Persistent link: https://www.econbiz.de/10012139572
What are the implications of (endogenous) directed technical change for the design of redistributive income taxes? I …
Persistent link: https://www.econbiz.de/10014496399
Are reforms towards individual taxation politically feasible? Are they desirable from a welfare perspective? We develop a method to answer such questions and apply it to the US federal income tax since the 1960s. Main findings are: As of today, Pareto-improvements require a move away from joint...
Persistent link: https://www.econbiz.de/10014481058
With the aim of limiting global warming, environmental subsidies are a popular public finance instrument to reduce carbon emissions. However, there is little evidence on why subsidies are effective in increasing demand for the goods subsidized. We use a framed field experiment to disentangle and...
Persistent link: https://www.econbiz.de/10014311773