We characterize optimal redistribution in a dynastic family model with human capital. We show how a government can …

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 …

inequality aversion parameter, the optimized rules provide a higher social welfare than the current rule, with the exception of …

with the Joneses" (KUJ), while increasing use of social media and growing inequality encourage comparison. Models with one …

national income (or wealth) appropriated by the same income group. In turn, we develop the Fiscal Inequality Coefficient which …

In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing … lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and -transfer system … offsets around half of the inequality in lifetime earnings that is due to differences in skill endowments. At the same time …

In a number of high-income countries over the past few decades there has been a large growth in income inequality and … applies the theory of optimal piecewise linear taxation to the issue of the taxation of top incomes. Our results suggest that … an appropriate response to rising inequality is a shift towards a more progressive multi-bracket income tax system, with …