All empirical models of earnings processes in the literature assume agood deal of homogeneity. In contrast to this we model earnings processesallowing for lots of heterogeneity between agents. We also introduce an ex-tension to the linear ARMA model that allows that the initial convergenceto the...

At the start of the long wars against Revolutionary and Napoleonic France, the taxes available to the British state fell mainly on outlays made by its citizens, upon domestically produced commodities and services. Smaller proportions came from import duties and direct taxes upon their incomes...

The paper builds on a method proposed by Geary and Stark (2002) for estimating regional incomes in Victorian Britain. This is modified by using tax data to allocate non-wage income across regions. The results suggest that the coefficient of variation of regional GDP per head was rising rapidly...

We introduce a model of redistributive income taxation and public expenditure. Thisjoint treatment permits analyzing the interdependencies between the two policies: onecannot be chosen independently of the other. Empirical evidence reveals that partisanconfrontation essentially falls on...

We analytically and quantitatively examine a prominent justification forcapital income taxation: goods preferred by those with high ability ought tobe taxed. We study an environment where commodity taxes are allowed to benonlinear functions of income and consumption and find that, when ability...

We analytically and quantitatively examine a prominent justi…cation for capital income taxation: goodspreferred by those with high ability ought to be taxed. We study an environment where commodity taxesare allowed to be nonlinear functions of income and consumption and …nd that, when ability...

A substantial literature examines second-best environmental policy, focusingparticularly on how the Pigouvian directive that marginal taxes should equalmarginal external harms needs to be modified in light of the preexistingdistortion due to labor income taxation. Additional literature is...

A vast literature has examined the impact of family income on the health anddevelopment outcomes of children. One channel through which increasedincome may operate is an improvement in a family’s ability to provide food,shelter, clothing, books, and other expenditure-related inputs to a...

Regular annual studies made by the Office of National Statistics in the UK areintended to show how far taxing household incomes and giving benefits in cash andkind to households redistributes income from rich to poor. The first attempt to do thisin the UK was made by Tibor Barna for the year...

‘Work-life balance’ generally refers to how people may combine paid employmentwith family responsibilities. The UK government’s attempts to promote work-lifebalance are connected to wider concerns to maximise labour-force participation andinclude policies on tax credits, child care and...