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We study the implications of limited commitment on education and tax policies chosen by benevolent governments. Individual wages are determined by both innate abilities and education levels. Consistent with real world practices, the government can decide to subsidize different levels of...
Persistent link: https://www.econbiz.de/10011490537
By inverting Saez (2002)'s model of optimal income taxation, we characterize the redistributive preferences of the Irish government between 1987 and 2005. The (marginal) social welfare function revealed by this approach is consistently comparable over time and show great stability despite...
Persistent link: https://www.econbiz.de/10009729273
This paper analyzes Pareto optimal taxation of labor and capital income in a lifecycle framework with private information and idiosyncratic risk. We focus on historyindependent tax systems. We thereby complement the Mirrlees taxation literature, which has so far typically either characterized...
Persistent link: https://www.econbiz.de/10011490557
The total social benefits of college education exceed the private benefits because the government receives a share of the monetary returns in the form of income taxes. We study the policy implications of this fiscal externality in an optimal dynamic tax framework. Using a variational approach we...
Persistent link: https://www.econbiz.de/10011491864
Social marginal welfare weights play an important role in areas of applied public policy analysis such as tax reform. These weights reflect the values of the social planner, or equivalently the underlying social welfare function. A number of recent papers have questioned the "default"...
Persistent link: https://www.econbiz.de/10010476701
Persistent link: https://www.econbiz.de/10001583428
, an activity that generates inequality in corporate taxation. Here, we examine how profit shifting relates to wage … inequality. Using rich matched employer-employee data from Norway, we find that profit-shifting firms pay higher wages … multinationals meaningfully contributes to wage inequality, both between and within firms. Finally, our back …
Persistent link: https://www.econbiz.de/10012878969
Persistent link: https://www.econbiz.de/10015054120
Persistent link: https://www.econbiz.de/10013184494
This paper studies the effect of income tax progressivity on the disproportionate usage of publicly funded higher education. We develop a rational choice model showing that more progressive tax systems increase poorer households' net fiscal benefit, making their children more likely to attend...
Persistent link: https://www.econbiz.de/10013447524