Showing 1 - 10 of 122
This paper studies the effect of multigrading-mixing children of different ages in the same classroom-on students' short- versus long-term academic achievement in Italy. We cope with the endogeneity of multigrading (and class size) through an instrumental variable identification strategy based...
Persistent link: https://www.econbiz.de/10013356481
Tax Liability Side Equivalence (tax LSE) claims that the statutory incidence of a tax is irrelevant for its economic incidence. In gift-exchange labor markets, firms provide a gift to workers by paying high wages, and workers reciprocate by providing high efforts. Tax LSE is theoretically...
Persistent link: https://www.econbiz.de/10010324733
We study the impact of fuel taxes and kilometer taxes on households' choices of vehicle quality, on their demand for kilometers driven, and on fuel consumption. Moreover, embedding this information in a model of the car market, we analyze the implications of these taxes for the opportunity costs...
Persistent link: https://www.econbiz.de/10010326170
In a competitive market with taxed transactions, it does not matter under full rationality which side of the market legally transfers the taxes. In the labor market, a tax levied on employers and a corresponding income tax levied on employees are equivalent. With boundedly rational agents, this...
Persistent link: https://www.econbiz.de/10010326278
We study the global macroeconomic effects of tariffs using a multiregional, general equilibrium model, EAGLE, that we extend by introducing US tariffs against Chinese imports into the US, and subsequently Chinese tariffs against US imports into China, consistent with recent trade policies by the...
Persistent link: https://www.econbiz.de/10012114768
This paper studies the implications of monopsony power for optimal income taxation and welfare. Firms observe workers' abilities while the government does not and monopsony power determines what share of the labor market surplus is translated into profits. Monopsony power increases the tax...
Persistent link: https://www.econbiz.de/10012606017
This paper studies the design of tax systems that implement a planner's second-best allocation in a market economy. An example shows that the widely used Mirrleesian (1976) tax system cannot implement all incentive-compatible allocations. Hammond's (1979) "principle of taxation" proves that any...
Persistent link: https://www.econbiz.de/10010491353
withrespect to parental human capital and wealth; (2) intergenerational transfers takeplace via parental education and, public … investments in education financed by taxes(possibly, with a level determined by majority voting); (3) due to investment inhuman … the production of human capi-tal, some attributed to 'home-education' and others related to 'public-education',and their …
Persistent link: https://www.econbiz.de/10010324734
We argue that promoting education may be a means to reduceincome inequality. When workers of different skill levels … areimperfect substitutes in production, an increase in the level ofhuman capital in the economy reduces the return to education … atrade-off between the distortions of taxes on effort and the distortionsof education subsidies on the investment in human …
Persistent link: https://www.econbiz.de/10010324814
College education is not only an investment; for many people it also generates consumption benefits. If these benefits … students, even when the colleges lack market power. Moreover, when the social return to education exceeds the private return …
Persistent link: https://www.econbiz.de/10010325496