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market generate unemployment. Workers differ in productivity. The government does not observe workers' productivity but only …
Persistent link: https://www.econbiz.de/10012776136
We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model … efficient values, at the optimum gross wages and unemployment are lower. Average tax rates are moreover increasing in wages. The …
Persistent link: https://www.econbiz.de/10013146465
We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …
Persistent link: https://www.econbiz.de/10012999019
The efficiency of educational choices is studied in a search-matching model where individuals face a tradeoff …: acquiring formal education or learning while on the job. When their education effort is successful, newcomers directly obtain a … and individuals devote too much effort to formal education. A self-financing tax and subsidy policy restores market …
Persistent link: https://www.econbiz.de/10013049747
This paper presents a comprehensive analysis of the role of capital taxation in advanced economies with a focus on the Swedish experience. We synthesize the existing theoretical literature, present facts about the capital stock and its distribution, review current capital tax practices and...
Persistent link: https://www.econbiz.de/10012920443
This paper revisits the standard model of labor supply under two additional assumptions: consumption requires time and some limited amount of work is enjoyable. Whereas introducing each assumption without the other one does not produce novel insights, combining them together does if the wage...
Persistent link: https://www.econbiz.de/10012963868
uses parental education as a measure of exogenous circumstances. An empirical microeconometric model of labour supply in …
Persistent link: https://www.econbiz.de/10013153308
We analyze the optimal nonlinear income tax schedule when taxpayers earn multiple incomes and differ along many unobserved dimensions. We derive the necessary conditions for the government s optimum using both a tax perturbation and a mechanism design approach, and show that both methods produce...
Persistent link: https://www.econbiz.de/10014083899
This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework with endogenous … (voluntary) nonparticipation and (involuntary) unemployment. The optimal employment tax rate is given by an inverse employment … responses. For plausible parameters, our matching environment induces much lower employment tax rates than the usual competitive …
Persistent link: https://www.econbiz.de/10013126920
This paper characterizes optimal income taxation when individuals respond along both the intensive and extensive margins. Individuals are heterogeneous across two dimensions: specifically, their skill and disutility of participation. Preferences over consumption and work effort can differ with...
Persistent link: https://www.econbiz.de/10013146460