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Are elasticities of taxable income rising?

Klemm, Alexander; Liu, Li; Mylonas, Victor; Wingender, … - 2018

This paper assesses a possible explanation for the global downward trend in top personal income tax rates over the last decades: globalization and the related tax evasion and avoidance opportunities could have raised elasticities of taxable income, which would imply lower optimal tax rates. The...

Persistent link: https://www.econbiz.de/10011878756

Risk-Taking and Optimal Taxation with Nontradable Human Capital

Hu, Zuliu - 1992

What are the effects of taxation on individual/entrepreneurs’ risk-taking behavior? This paper re-examines this old … in labor income, then the effect depends on the nature of interaction between wage risk and investment income risk. A … labor income tax may actually raise demand for the risky capital asset if human capital risk and physical capital risk are …

Persistent link: https://www.econbiz.de/10014395838

Growth Effects of Income and Consumption Taxes : Positive and Normative Analysis

Milesi-Ferretti, Gian Maria - 1995

The effects of income and consumption taxation are examined in the context of models in which the growth process is driven by the accumulation of human and physical capital. The different channels through which these taxes affect economic growth are discussed, and it is shown that in general the...

Persistent link: https://www.econbiz.de/10014398183

Fiscal redistribution and social welfare

Coady, David P.; D'Angelo, Devin; Evans, Brooks - 2019

Fiscal policy is a key tool for achieving distributional objectives in advanced economies. This paper embeds the discussion of fiscal redistribution within the standard social welfare framework, which lends itself to a transparent and practical evaluation of the extent and determinants of fiscal...

Persistent link: https://www.econbiz.de/10012009467

Social versus individual work preferences : implications for optimal income taxation

An, Zhiyong; Coady, David P. - 2022

Persistent link: https://www.econbiz.de/10013169902

Inequality and Optimal Redistributive Tax and Transfer Policies

Zee, Howell H. - 1999

This paper explores the revenue-raising aspect of progressive taxation and derives, on the basis of a simple model, the optimal degree of tax progressivity where the tax revenue is used exclusively to finance (perfectly) targeted transfers to the poor. The paper shows that not only would it be...

Persistent link: https://www.econbiz.de/10014400295

Macroeconomic Uncertainty, Precautionary Savings and the Current Account

Ostry, Jonathan David - 1992

incorporate the effects of macroeconomic uncertainty on private savings behavior. It is shown that the greater the uncertainty in … savings and, other things equal, the larger is the current account surplus. Empirical support for the model is found using …

Persistent link: https://www.econbiz.de/10014396005

The Volatility Trap : Precautionary Saving, Investment, and Aggregate Risk

Cherif, Reda - 2012

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store-or-sow"" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low investment, or a ""volatility trap."" Namely, big savers...

Persistent link: https://www.econbiz.de/10014396572

Tariffs, Optimal Taxes, and Collection Costs

Mihaljek, Dubravko - 1992

This paper studies an optimal tax problem for a small open economy where collecting taxes is costly. It is shown that, in the presence of collection costs modeled as an increasing function of the tax rate: (a) the standard rules of optimal commodity taxation (the Ramsey, the inverse elasticity,...

Persistent link: https://www.econbiz.de/10014398497

Do audits deter or provoke future tax noncompliance? : evidence on self-employed taxpayers

Beer, Sebastian; Kasper, Matthias; Kirchler, Erich; … - 2019

This paper employs unique tax administrative data and operational audit information from a sample of approximately 7,500 self-employed U.S. taxpayers to investigate the effects of operational tax audits on future reporting behavior. Our estimates indicate that audits can have substantial...

Persistent link: https://www.econbiz.de/10012122691