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We study the impact of endogenous longevity on optimal tax progressivity and inequality in an overlapping generations model with skill heterogeneity. Higher tax progressivity decreases both the longevity gap and net income inequality, but at the expense of lower average lifetime and lower...
Persistent link: https://www.econbiz.de/10012312268
The optimal capital income tax rate has been shown to be nonzero in overlapping generations (OLG) models, as it helps redistribute income between cohorts and individuals with different labor supply elasticities and individual productivities. We show in a medium-scale OLG model that the optimal...
Persistent link: https://www.econbiz.de/10015396797
We study the impact of endogenous longevity on optimal tax progressivity and inequality in an overlapping generations model with skill heterogeneity. Higher tax progressivity decreases both the longevity gap and net income inequality, but at the expense of lower average lifetime and lower...
Persistent link: https://www.econbiz.de/10013314957
Persistent link: https://www.econbiz.de/10013191507
In our dynamic optimizing sticky price model, agents are heterogeneous with regard to their age and their productivity … dominates the substitution effect. This is in line with the adverse effect of productivity shocks on employment found in …
Persistent link: https://www.econbiz.de/10003301356
The effect of a permanent change of inflation on the distribution of wealth is analyzed in a general equilibrium OLG … of inflation results in a lower stock market participation rate; in addition, the distribution of wealth becomes more … anticipated inflation are considerably lower than in Imrohoroglu (1992). …
Persistent link: https://www.econbiz.de/10001737586
Persistent link: https://www.econbiz.de/10003404903
and their productivity. We emphasize three channels through which unanticipated inflation affects the income and wealth …Inflation is often associated with a loss for the poor in the medium and long run. The cyclical effects are basically … distribution: 1) factor prices, 2) the 'bracket creep', and 3) sticky pensions. In our model, unanticipated inflation decreases the …
Persistent link: https://www.econbiz.de/10014051858
In our dynamic optimizing sticky price model, agents are heterogeneous with regard to their age and their productivity … dominates the substitution effect. This is in line with the adverse effect of productivity shocks on employment found in …
Persistent link: https://www.econbiz.de/10010261430
Recent work on money and endogenous growth finds modest welfare costs of inflation. Furthermore, high inflation reduces … rate of inflation depending on the elasticity of labor supply. Considering the transition dynamics following a change in … the monetary policy, the optimal quarterly inflation rate is found to amount to approximately 3,5% in the benchmark case …
Persistent link: https://www.econbiz.de/10001489853