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national income (or wealth) appropriated by the same income group. In turn, we develop the Fiscal Inequality Coefficient which …
Persistent link: https://www.econbiz.de/10012948621
poverty and income inequality have invited increasing volumes of research focusing on the nexus between equity and efficient … into a middle income country (ADB, 2014). This has stimulated the need to understand causes of inequality and poverty for … to offer an efficient policy options for Asian countries. Major determinant factors of growing inequality, poverty and a …
Persistent link: https://www.econbiz.de/10013054924
The evolution of the ratio of direct taxation (characterized by progressive rates) over indirect and payroll taxation (characterized by flat rates) is examined together with its distributional consequences for the Bottom 50%, Middle 40% and Top 10% shares of income. Oscillations of this ratio...
Persistent link: https://www.econbiz.de/10012909982
Acquiring information about destinations can be costly for migrants. We model information frictions in the rational inattention framework and obtain a closed-form expression for a migration gravity equation that we bring to the data. The model predicts that ows from countries with a higher cost...
Persistent link: https://www.econbiz.de/10012838467
This paper deals with one of the main empirical problems associated with the rational addiction theory, namely that its …
Persistent link: https://www.econbiz.de/10012843165
Resit exams – extra opportunities to do an exam in the same academic year – are widely prevalent in European higher education, but uncommon in the US. I present a simple theoretical model to compare rational student behavior in the case of only one exam opportunity versus the case of two...
Persistent link: https://www.econbiz.de/10013099740
We study belief updating about relative performance in an ego-relevant task. Manipulating the perceived ego-relevance of the task, we show that subjects update their beliefs optimistically because they derive direct utility flows from holding positive beliefs. This finding provides a behavioral...
Persistent link: https://www.econbiz.de/10014242740
In this paper we question the hypothesis of full rationality in the context of job changing behaviour, via simple … forces of job change are future real wages and expected job quality. Bounded rationality suggests that individuals will … and between cells. Under full rationality the following are to be expected: high inter-cell mobility, large dispersion …
Persistent link: https://www.econbiz.de/10013316720
learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate …
Persistent link: https://www.econbiz.de/10013135991
This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the Ramsey government achieves efficient labor market...
Persistent link: https://www.econbiz.de/10012915713