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Wealthier households obtain higher returns on their investments than poorer ones. How should the tax system account for this return inequality? I study capital taxation in an economy in which return rates endogenously correlate with wealth. The leading example is a financial market, where the...
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We evaluate a temporary public sector employment program targeted at individuals with weak labor market attachment, applying dynamic inverse probability weighting to account for dynamic selection. We show that the program is successful in increasing employment and reducing social assistance....
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We analyze inequality and mobility across generations in a dynastic economy. Nurture, in terms of bequests and the schooling investment into the next generation, is observable but the draw of nature in terms of ability is hidden, stochastic and persistent across generations. We calibrate the...
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This paper analyzes optimal nonlinear income and inheritance taxation by incorporating two types of models that were … information environment we characterize optimal income and inheritance taxation. This paper shows that, contrary to the general … perception that inheritance taxation should be progressive to some extent, the expected tax liability of those who have a higher …
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