study the impact of two mechanisms on labor supply: (i) differences in marriage stability and (ii) differences in tax … systems. We calibrate the model to U.S. data and study how labor supply in the U.S. changes as we introduce European tax … tax mechanisms combined explain 58% of the variation in labor supply between the U.S. and the European countries in our …

redistribution and lowers institutional quality. The effect of the former is to increase productive investment, and the effect of the … redistribution, especially in non-democratic countries. …

In this paper, I first summarize how the US Earned Income Tax Credit (EITC) operates and describe the characteristics … marriage, and problems of compliance with the tax system. I then briefly discuss some possible reforms to the structure of the …

variations in linear budget constraints. This is quite surprising since most income tax systems are nonlinear, generating … that are correct for variations in a linear income tax. Such a procedure leads to incorrect results. The main purpose of … this paper is to show how to correctly calculate the marginal deadweight loss when the income tax is nonlinear. A second …

This paper studies optimal unemployment benefit levels and optimal proportional income tax rates over the business … because the UI system can be used to smooth consumption across different economic states. However, high benefits increase … unemployment. An alternative way to redistribute income is to vary tax rates over the business cycle. In this paper, we develop an …

The increase in international capital mobility over the past two decades has put pressure on the tax treatment of … corporate equity income. Corporate-level taxes distort investment flows across locations and create opportunities for tax … avoidance by shifting income across jurisdictions. Outward flows of capital shift part of the burden of the corporate-level tax …

We use a new panel dataset of credit card accounts to analyze how consumers responded to the 2001 federal income tax … consumers' response to 'lumpy' increases in income like tax rebates, working in part through balance sheet (liquidity …