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standards. The workhorse models of optimal income taxation call for more redistribution as inequality rises. By contrast, living …. Rising living standards dampen by at least 25% the desired increase in redistribution due to rising inequality. …
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We investigate the welfare implications of changing a proportional capital income tax for a model economy in which heterogeneous households face labor income risk and trade only one asset. Labor taxes are adjusted at the time of the reform to maintain long run budget balance. Our stochastic...
Persistent link: https://www.econbiz.de/10005423795
For more than 25 years, the Social Security Trust Fund has been projected to run out of money in 2033 (give or take a few years), potentially causing benefits to be severely reduced in the absence of corrective legislative action. Today (February 2024), projections are made by the Social...
Persistent link: https://www.econbiz.de/10014581826
This paper investigates if there are circumstances where time-varying tax rates could improve welfare and whether such policy can effectively be implemented in practice. While, in principle, variable taxes could improve welfare in some cases, the paper highlights the very particular...
Persistent link: https://www.econbiz.de/10012782675
For more than 25 years, the Social Security Trust Fund has been projected to run out of money in 2033 (give or take a few years), potentially causing benefits to be severely reduced in the absence of corrective legislative action. Today (February 2024), projections are made by the Social...
Persistent link: https://www.econbiz.de/10014480253
for missing credit and insurance markets. The resulting tradeoffs for growth and efficiency are explored, both … to higher income growth than taxes and transfers, but at the cost of lower insurance. Overall efficiency is assessed … costs and benefits of redistribution are generally of the same order of magnitude, resulting in reasonable values for the …
Persistent link: https://www.econbiz.de/10005124288
redistribution of income is connected with serious disincentives, influencing the preferences for work and leisure as well as for … real capital. An important prerequisite for a sustainable growth process is the efficient design of the social security …
Persistent link: https://www.econbiz.de/10010282647
redistribution of income is connected with serious disincentives, influencing the preferences for work and leisure as well as for … real capital. An important prerequisite for a sustainable growth process is the efficient design of the social security …
Persistent link: https://www.econbiz.de/10009323207