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Efficient subsidization of human capital accumulation with overlapping generations and endogenous growth
Richter, Wolfram F.; Braun, Christoph - 2009
This paper studies second-best policies in an OLG model in which endogenous growth results from human capital accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified labour. Growth equilibria are inefficient in...
Persistent link: https://www.econbiz.de/10003926427
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Redistribution and insurance with simple tax instruments
Findeisen, Sebastian; Sachs, Dominik - 2015
We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We … independent of the social welfare function and determined by the degree of income risk and risk aversion. The optimal linear … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results …
Persistent link: https://www.econbiz.de/10011283108
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Human capital and optimal redistribution
Koeniger, Winfried; Prat, Julien - 2014
differs from the wedge for bequests because human capital carries risk: its returns depend on the non-diversifiable risk of … bad hedge for consumption risk. …
Persistent link: https://www.econbiz.de/10010440541
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Welfare improving tax evasion
Canta, Chiara; Cremer, Helmuth; Gahvari, Firouz - 2020
We study optimal income taxation in a framework where one's willingness to report his income truthfully is positively correlated with his type. We show that allowing low-productivity types to cheat leads to Pareto-superior outcomes as compared to deterring them, even if audits can be performed...
Persistent link: https://www.econbiz.de/10012252256
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Optimal income taxation with composition effects
Jacquet, Laurence; Lehmann, Etienne - 2017
We study the optimal nonlinear income tax problem with multidimensional individual characteristics on which taxes cannot be conditioned. We obtain an optimal tax formula that generalizes the standard one by averaging, with specific weights, the sufficient statistics of individuals who earn the...
Persistent link: https://www.econbiz.de/10011732051
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Optimal income taxation with unemployment and wage responses : a sufficient statistics approach
Kroft, Kory; Kucko, Kavan; Lehmann, Etienne; Schmieder, … - 2016
We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous wages, to study the shape of the tax and transfer system at the bottom of the distribution. The sufficient statistics are the macro employment response to taxation and the micro...
Persistent link: https://www.econbiz.de/10011452220
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Higher tax and less work : an optimal response to relative income concern
FitzRoy, Felix R.; Jin, Jim Y.; Nolan, Michael A. - 2019
There is much evidence that relative income concern reduces subjective wellbeing and raises labour supply - "keeping up with the Joneses" (KUJ), while increasing use of social media and growing inequality encourage comparison. Models with one or two agent-types generally miss the policy relevant...
Persistent link: https://www.econbiz.de/10012034986
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Regional investment and individual redistribution in a federation
Kessing, Sebastian; Schneider, Benny - 2014
We study the strategic incentives of regional governments to allocate their budget to public investment and to public consumption expenditures against the background of an incentive-compatible redistribution policy set by the central government. Regional investment changes the productivity...
Persistent link: https://www.econbiz.de/10010429124
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Combining microsimulation and optimization to identify optimal flexible tax-transfer rules
Colombino, Ugo; Islam, Nizamul - 2020
We use a behavioural microsimulation model embedded in a numerical optimization procedure in order to identify optimal (social welfare maximizing) tax-transfer rules. We consider the class of tax-transfer rules consisting of a universal basic income and a tax defined by a 4th degree polynomial....
Persistent link: https://www.econbiz.de/10012228537
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The case for NIT+FT in Europe : an empirical optimal taxation exercise
Islam, Nizamul; Colombino, Ugo - 2017
We present an exercise in empirical optimal taxation for European countries from three areas: Southern, Central and Northern Europe. For each country, we estimate a microeconometric model of labour supply for both couples and singles. A procedure that simulates the households' choices under...
Persistent link: https://www.econbiz.de/10011762204