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Distributional consequences typically receive limited attention in economic models that analyze the effects of monetary and financial sector policies. These consequences deserve more attention since financial markets are incomplete, imperfect, and economic agents' access to them is often...
Persistent link: https://www.econbiz.de/10010222156
We evaluate the effectiveness of a more progressive tax scheme in raising government revenues. We develop a life-cycle economy with heterogeneity and endogenous labor supply. Households face a progressive income tax schedule, mimicking the Federal Income tax, and flat-rate taxes that capture...
Persistent link: https://www.econbiz.de/10010386338
We apply the Kakwani approach to decomposing redistributive effect into average rate, progressivity, and reranking … effects of direct and indirect taxes are mostly associated with changes in progressivity. For in-kind benefits, changes in the … average benefit rate and progressivity each played the major roles at different times. …
Persistent link: https://www.econbiz.de/10012697297
examines in detail their distributional impact and finds that they led to increases in inequality and (relative) poverty. The … result is stronger in the case of inequality indices that are relatively more sensitive to changes close to the bottom of the …
Persistent link: https://www.econbiz.de/10012253866
We analyze the role of optimal income taxation across different local labor markets. Should labor in large cities be taxed differently than in small cities? We find that a planner who needs to raise revenue and is constrained by free mobility of labor across cities does not choose equal taxes...
Persistent link: https://www.econbiz.de/10010470412
We investigate the welfare implications of two pre-crisis immigration waves (1991-2000 and 2001-2010) and of the post-crisis wave (2011-2015) for OECD native citizens. To do so, we develop a general equilibrium model that accounts for the main channels of transmission of immigration shocks - the...
Persistent link: https://www.econbiz.de/10011874688
on inequality and progressivity become substantially lower when payroll taxes are reduced, which is due to increased work …
Persistent link: https://www.econbiz.de/10010225955
In a number of high-income countries over the past few decades there has been a large growth in income inequality and … an appropriate response to rising inequality is a shift towards a more progressive multi-bracket income tax system, with …
Persistent link: https://www.econbiz.de/10010374096
with the Joneses" (KUJ), while increasing use of social media and growing inequality encourage comparison. Models with one …
Persistent link: https://www.econbiz.de/10012034986
processes: reordering of the socio-economic position of urban neighbourhoods; changing levels of inequality between …
Persistent link: https://www.econbiz.de/10011925327