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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 …
Persistent link: https://www.econbiz.de/10013016371
This paper develops a simulation model in order to examine the effectiveness of state attempts at redistribution under …-level redistribution are substantial, but state action may still be preferred to a federal policy that is at odds with preferences of a … state pursuing additional redistribution, but not a cost at the national level …
Persistent link: https://www.econbiz.de/10013099765
The current debt crisis has given rise to a debate about deeper fiscal integration in Europe. The view is widespread that moving towards a 'fiscal union' would have a stabilising effect in the event of macroeconomic shocks. In this paper we study the economic effects of introducing two elements...
Persistent link: https://www.econbiz.de/10013105006
The objectives of this paper are twofold. First, we investigate whether politicians use resources from the federal budget as a strategy to maintain and expand their political capital. Second, we examine whether such a strategy is rewarded by voters who elect politicians who assist their...
Persistent link: https://www.econbiz.de/10013059677
The impact of school resources on the quality of education in developing countries may depend crucially on whether resources are targeted efficiently. In this paper we use a randomized experiment to analyze the impact of a school grants program in Senegal, which decentralized a portion of the...
Persistent link: https://www.econbiz.de/10013024940
lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and -transfer system …
Persistent link: https://www.econbiz.de/10012929083
Expansion of the public sector and redistributive policies may reduce income inequality, but formal tests suffer from the problem of endogeneity of government size with respect to the distribution of income. Studying 30 European countries over the period 2004-2015, we apply instrumental variable...
Persistent link: https://www.econbiz.de/10012894558
effects on people's preferences for redistribution. In areas with larger inflows in the 1940s, people have substantially … higher demand for redistribution more than 50 years later …
Persistent link: https://www.econbiz.de/10012912247
This paper uses a laboratory experiment to explore individuals' motivations for redistribution. The laboratory results … show that as income uncertainty diminishes, participants become more extreme in their preferences for redistribution. The … findings suggest that for most people, the motivation for redistribution is financial self-interest – namely as insurance …
Persistent link: https://www.econbiz.de/10012981509
I examine the effect of immigrant inflows in Europe on natives' individual attitudes towards redistribution and … favor lower (higher) levels of redistribution …
Persistent link: https://www.econbiz.de/10012955009