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Efficient Subsidization of Human Capital Accumulation with Overlapping Generations and Endogenous Growth

Richter, Wolfram F. - 2010

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/10013149817

Redistribution and Insurance with Simple Tax Instruments

Findeisen, Sebastian - 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/10013016371

Education and Optimal Dynamic Taxation

Findeisen, Sebastian - 2011

We study optimal tax and educational policies in a dynamic private information economy, in which ex-ante heterogeneous individuals make an educational investment early in their life and face a stochastic wage distribution. We characterize labor and education wedges in this setting analytically...

Persistent link: https://www.econbiz.de/10013118777

Optimal Piecewise Linear Income Taxation

Apps, Patricia F. - 2011

Given its significance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper offers a simple and transparent analysis of its main characteristics. We fully characterize optimal tax parameters for the cases in which budget sets are convex...

Persistent link: https://www.econbiz.de/10013119548

Mobility, Taxation and Welfare

Bibi, Sami - 2011

Income mobility is often thought to equalize permanent incomes and thereby to improve social welfare. The welfare analysis of mobility often fails, however, to account for the cost of the variability of periodic incomes around permanent incomes. This paper assesses the net welfare benefit of...

Persistent link: https://www.econbiz.de/10013123610

Employment, Hours of Work and the Optimal Taxation of Low Income Families

Blundell, Richard W. - 2011

The optimal design of low income support is examined using a structural labour supply model. The approach incorporates unobserved heterogeneity, fixed costs of work, childcare costs and the detailed non-convexities of the tax and transfer system. The analysis considers purely Pareto improving...

Persistent link: https://www.econbiz.de/10013123920

Tax Me If You Can! Optimal Nonlinear Income Tax between Competing Governments

Lehmann, Etienne - 2013

, extending the Diamond-Saez formula. The theory and numerical simulations on the US case show that the level and the slope of the …

Persistent link: https://www.econbiz.de/10013074211

Accounting for Family Background When Designing Optimal Income Taxes : A Microeconometric Simulation Analysis

Aaberge, Rolf - 2009

The purpose of this paper is to introduce and adopt a generalised version of Roemer's (1998) Equality of Opportunity (EOp) framework, which we call extended EOp, for analysing second-best optimal income taxation. Unlike the pure EOp criterion of Roemer (1998) the extended EOp criterion allows...

Persistent link: https://www.econbiz.de/10013153308

On the Optimality of a Minimum Wage : New Insights from Optimal Tax Theory

Hungerbühler, Mathias - 2007

We build a theoretical model to study whether a minimum wage can be welfare-improving if it is implemented in conjunction with an optimized nonlinear income tax. We consider this issue in a framework where search frictions on the labor market generate unemployment. Workers differ in...

Persistent link: https://www.econbiz.de/10012776136

Higher Tax and Less Work : An Optimal Response to Relative Income Concern

Fitzroy, Felix R. - 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...

Persistent link: https://www.econbiz.de/10012865859