The introduction of a flat tax is supposed to have several advantages. Administration and compliance costs are reduced …, as well as incentives for tax evasion. Furthermore, positive employment and growth effects are expected. Despite these … advantages, a flat rate tax is not very popular in most Western European countries. The most important objection against a flat …

This Paper explores the implications of the recent sharp rise in US wage inequality for welfare and the cross … markets can account for these trends in cross-sectional US data. We also investigate the welfare costs of the rise in wage in …

such signaling effects may arise in equilibrium and may lead to more unequal distributions of wealth and lower welfare than …

welfare of domestic households. …

The success of the flat rate tax in Eastern Europe suggests that this concept could also be a model for the welfare … allowance yields positive static welfare effects amounting to approximately 1.8 per cent of income tax revenue but increases … problematic distributional impact, flat tax reforms are unlikely to spill over to the welfare states of Western Europe. …

recently and thus cannot explain the rising welfare receipt. Following theoretical predictions, the probability that a rational …

This paper analyses the welfare effects of changes in cross-sectional wage dispersion, using a class of tractable … heterogeneous-agent economies. We emphasize a trade-off in the welfare calculation that arises when labour supply is endogenous. On … welfare loss roughly equivalent to a 2.5% decline in lifetime consumption. Assuming Cobb-Douglas preferences, this number is …

estimate the welfare consequences of these food price increases, and their distribution across households. Because Brazil is a …