Several recent papers addressing the role of income distribution in the growth process have focused on the role income inequality plays in the political process. Inequality is linked to pressure for high, redistributionary tax rates, which lead to low investment and therefore growth....

We model the optimal reaction of a public PAYG pension system to demographic shocks. We compare the ex-ante first best and second best solution of a Ramsey planner with full commitment to the outcome under simple third best rules that mimic the pension systems observed in the real world. The...

Nous analysons ce que sont les politiques fiscales et de depenses publiques optimales dans un pays qui doit reduire sa dette publique et qui se trouve dans un contexte de recession. Nous examinons les effets de la situation economique de court-terme (y-a-t-il sous-emploi keynesien ou...

In this paper, we study the intertemporal equilibria of an infinite-lived representative agent model with public debt. We show that for a given path of government expenditures, there generally exist a continuum of equilibria depending on various debt policies.

This paper examines how the tax burden in a developing economy should be distributed between capital income and labor income. We study a two-sector model, where the traditional sector is "informal" and consequently cannot be taxed by the government. In this set up, we find that the optimal...

This paper studies the incidence of tax-transfer policy in a growth model wherein individuals differ according to their level of intergenerational altruism and have an endogenous labor supply. The main results is that public debt is neutral at the macro level but redistributes resources from...

Nous etudions dans un modele a generations avec altruisme imparfait la distribution de la richesse de long terme ainsi que les inegalites sociales qu'elle engendre. Puis nous introduisons successivement dans le modele deux types de politique fiscale redistributive: une taxation des heritages et...

This paper explores the fiscal implications to the US, and argues that immigration policy should be viewed as a vital part of fiscal policy. In particular, a case is made that skills and age at time of arrival are of great importance for the cost-benefit calculation of new immigrants.

This paper studies the effects of taxation on output volatility in OECD countries to shed light on the sources of observed heterogeneity over time and across countries. To this end, we derive tax effects on macro aggregates in a stochastic neoclassical model. As a result, taxes are shown to...