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This paper examines the generation of earnings distributions using a labour supply framework in which individuals face piecewise-linear budget constraints. The possible implications for the distribution of earnings within a population consisting of single individuals having a joint distribution...
Persistent link: https://www.econbiz.de/10008565302
We address the issue of optimal growth when standard-of-living aspirations are transmitted from one generation to the next. We derive the condition for the optimal solution to be stable in the saddle-point sense and show that this optimal solutionmay display damped oscillations even when the...
Persistent link: https://www.econbiz.de/10005474443
A recent study of the welfare state in Sweden, Rosen (1995, 1996, 1997), concludes that child care subsidies may lead … extend Rosen's model, we analyze the case of positive externalities associated with child quality. The positive externality … provides a rationale for child care subsidies, as expected, and also influences the optimal income tax rate. …
Persistent link: https://www.econbiz.de/10004980969
This paper examines the complications posed by pre-existing tax distortions in the economy, for the evaluation of a variety of subsidy policies that affect the environment. These complications include not only the efficiency cost of financing the subsidy by distortionary taxation, but also the...
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