In this chapter we present a dynamic general equilibrium methodology for evaluating alternative proposals for tax reform. We illustrate this methodology by comparing alternative proposals that would remove barriers to efficient allocation of capital and labor inputs. These proposals are based on...

This essay uncovers an important piece of an enduring puzzle: Why, beginning in the mid-1960s, did American managers turn away from long-term competitiveness and become fixated on measures of short-term performance? The legacy of this pivot can be seen half a century later in slower productivity...

This paper uses a laboratory experiment to explore individuals' motivations for redistribution. The laboratory results show that as income uncertainty diminishes, participants become more extreme in their preferences for redistribution. The findings suggest that for most people, the motivation...

The purpose of this paper is to provide an overview of how to analyse the distributional effects of fiscal reforms. Thereby, distributional e¤ects shall be differentiated by four subconcepts, i.e. 1.) the traditional concept of inequality, 2.) the rather novel concept of polarisation, 3.) the...

In order to design optimal policy instruments that shape the distribution of income we require realistic income models. A comparison between popular stochastic processes for income shows that most of them fail to match inequality in the US, especially at the top. The Geometric Brownian Motion...

This paper investigates whether there is a relationship between progressivity of personal income taxation and output growth. Additionally a relation between progressivity of personal income taxation and volatility of output growth is examined. There is a gap in the existing literature examining...

We study the impact of endogenous longevity on optimal tax progressivity and inequality in an overlapping generations model with skill heterogeneity. Higher tax progressivity decreases both the longevity gap and net income inequality, but at the expense of lower average lifetime and lower...