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The Ramsey optimal taxation theory implies that the tax rate on capital income should be zero in the long run. This result holds even if the social planner only cares about workers that do not hold assets, or if the planner only cares about any other group in the economy. This paper demonstrates...
Persistent link: https://www.econbiz.de/10005792415
behavior: (i) propensity for civic engagement, and (ii) propensity for redistribution. A well established literature documents … greater propensity for civic engagement and lower propensity for redistribution among Northern Italians. In Venezuela, we … preference against redistribution among descendants from Northern as opposed to Southern Italians, suggesting that cultural …
Persistent link: https://www.econbiz.de/10008559011
redistribution through internal migration is substantial in some countries, especially when computed as a lifetime measure. Time …
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This paper discusses problems with wage subsidy proposals, specifically focusing on the proposal in Rewarding Work by Edmund Phelps. It shows that the book uses one price theory to argue that the whole benefit of a wage subsidy will go to workers (rather than firms or consumers), but it uses an...
Persistent link: https://www.econbiz.de/10008563551
This paper explores if more generous social spending polices in fact lead to less income inequality, or if redistributive outcomes are offset by behavioral disincentive effects. To account for the inherent endogeneity of social policies with regard to inequality levels, I apply the System GMM...
Persistent link: https://www.econbiz.de/10008564705
Theoretical work based on social identity theory and in-group favoritism predicts that increased population diversity (e.g., due to immigration) reduces support for redistributive public policies. In this article, we add to the empirical literature testing this prediction in three ways. First,...
Persistent link: https://www.econbiz.de/10010896168
in the distribution of market income as well as shifts in the effectiveness of public redistribution mechanisms. We find … decreasing effectiveness of the public mechanisms of income redistribution are the main explanatory factors for the development …
Persistent link: https://www.econbiz.de/10010896223