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What are the implications of (endogenous) directed technical change for the design of redistributive income taxes? I study this question in a Mirrleesian economy augmented to include endogenous technology development and adoption choices by firms. Under certain conditions, any progressive tax...
Persistent link: https://www.econbiz.de/10013314849
taxation in the tradition of Mirrlees (1971). Our results also apply to non-welfarist states which have income redistribution …
Persistent link: https://www.econbiz.de/10013318601
taxation in the tradition of Mirrlees (1971). Our results also apply to nonwelfarist states which have income redistribution …
Persistent link: https://www.econbiz.de/10014065005
We characterize optimal redistribution in a dynastic family model with human capital. We show how a government can …
Persistent link: https://www.econbiz.de/10010429793
We show that more human capital improves incentives in a standard optimal taxation problem: common assumptions about preferences and technology imply that the disutility of labor decreases less strongly in unobserved ability if agents have more human capital. Human capital thus reduces the...
Persistent link: https://www.econbiz.de/10010483219
We characterize optimal redistribution in a dynastic family model with human capital. We show how a government can …
Persistent link: https://www.econbiz.de/10010440541
We analyze the redistributive (dis)advantages of a minimum wage over income taxation in competitive labor markets. A minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low-skilled workers. A simple condition based on three sufficient...
Persistent link: https://www.econbiz.de/10010234542
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
We argue that promoting education may be a means to reduceincome inequality. When workers of different skill levels ….Hence, a given compression of after-tax incomes can be achievedat lower marginal tax rates. Optimal redistribution policy faces …
Persistent link: https://www.econbiz.de/10011333262