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The existing literature on optimal taxation typically assumes there exists a capacity to implement complex tax schemes, which is not necessarily the case for many developing countries. We examine the determinants of optimal redistributive policies in the context of a developing country that can...
Persistent link: https://www.econbiz.de/10011280723
provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … bound on optimal taxes: even for welfare functions that do not value redistribution, marginal tax rates are positive for all …
Persistent link: https://www.econbiz.de/10011280819
provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … bound on optimal taxes: even for welfare functions that do not value redistribution, marginal tax rates are positive for all …
Persistent link: https://www.econbiz.de/10011283108
The German experience of the crisis was very different compared to those of most other countries in Europe. Germany was hit by a very strong shock which was relatively concentrated in the exporting, manufacturing industries. In addition, the German labour market was very resilient during the...
Persistent link: https://www.econbiz.de/10011286043
In this paper we allude to a novel role played by the non-linear income tax system in the presence of adverse selection in the labor market due to asymmetric information between workers and firms. We show that an appropriate choice of the tax schedule enables the government to affect the wage...
Persistent link: https://www.econbiz.de/10011289068
This paper presents findings on the changing effectiveness of cash transfers and income taxes on inequality and poverty reduction in four EU countries - the UK, Italy, Sweden and France. We use long time series (spanning four decades) to examine trends within countries over time and between...
Persistent link: https://www.econbiz.de/10011289926
Persistent link: https://www.econbiz.de/10011378342
How does a redistribution of trade gains affect welfare when income inequality matters? To answer this question, we … extend the [1] model to unionized labor markets and heterogeneous workers. As redistribution schemes, we consider … redistribution scheme is to finance unemployment benefits by a wage tax. …
Persistent link: https://www.econbiz.de/10011380024
We develop models of optimal linear and non-linear income taxation with endogenous human capital formation to explore optimal education subsidies. Optimal subsidies on education ensure efficiency in human capital accumulation and thus play an important role in alleviating the tax distortions on...
Persistent link: https://www.econbiz.de/10011343324
Persistent link: https://www.econbiz.de/10011345055