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beyond those of expected utility theory. It is shown that the curvature of the utility function is directly related to the … ratio of the income elasticity of labor supply to the wage elasticity, holding fixed the degree of complementarity between … a calibration argument showing that a positive uncompensated wage elasticity, as found in most studies of labor supply …
Persistent link: https://www.econbiz.de/10012468704
the micro level means that the aggregate labour supply elasticity is not a structural parameter: any aggregate elasticity …
Persistent link: https://www.econbiz.de/10012457352
rate formula as a function of the three corresponding behavioral elasticities. The first elasticity (labor supply) is the … elasticity (avoidance) through tax enforcement and tax neutrality across income forms. The optimal top tax rate increases with … the third elasticity (bargaining) as bargaining efforts are zero-sum in aggregate. We provide evidence using cross …
Persistent link: https://www.econbiz.de/10012461041
labor supply elasticities were small, recent work has identified three key reasons that the aggregate elasticity may be …
Persistent link: https://www.econbiz.de/10012461228
labor supply elasticity of 0.33 on the intensive margin and 0.25 on the extensive margin after accounting for frictions …
Persistent link: https://www.econbiz.de/10012463033
Gender-Based Taxation (GBT) satisfies Ramsey's rule of optimality because it taxes at a lower rate the more elastic labor supply of women. This holds when different elasticities between men and women are taken as exogenous. We study GBT in a model in which labor supply elasticities emerge...
Persistent link: https://www.econbiz.de/10012465001
We build a life cycle model of labor supply that incorporates changes along both the intensive and extensive margin and use it to assess the consequences of changes in tax and transfer policies on equilibrium hours of work. We find that changes in taxes have large aggregate effects on hours of...
Persistent link: https://www.econbiz.de/10012465638
elasticity of labor supply to the wage elasticity and (2) the degree of complementarity between consumption and labor. I bound … labor supply elasticity estimates from thirty-three studies, I find a mean estimate of g = 1. I then show that generating g …
Persistent link: https://www.econbiz.de/10012466602
This paper uses a panel of individual tax returns and the `bracket creep' as source of tax rate variation to construct instrumental variables estimates of the sensitivity of income to changes in tax rates. From 1979 to 1981, the US income tax schedule was fixed in nominal terms while inflation...
Persistent link: https://www.econbiz.de/10012471417
A Melitz-style model of monopolistic competition with heterogeneous firms is integrated into a simple New Economic Geography model to show that the standard assumption of identical firms is neither necessary nor innocuous. We show that re-locating to the big region is most attractive for the...
Persistent link: https://www.econbiz.de/10012467026