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We calibrate a sequence of four nested models to study the dynamics of wealth accumulation. Individuals maximize a utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake - this is not a life-cycle model. A competitive firm produces a...
Persistent link: https://www.econbiz.de/10010515458
We study the importance of the extended family - the dynasty - for the persistence in inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to identify parents' siblings and cousins, their spouses, and the...
Persistent link: https://www.econbiz.de/10012001644
pension benefit rule that is adopted. If this rule incorporates some implicit or explicit redistribution from healthy to … unhealthy individuals then the latter types are better off as a result of the pension system. In the absence of redistribution …
Persistent link: https://www.econbiz.de/10011761551
How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in...
Persistent link: https://www.econbiz.de/10014247378
This article presents a novel explanation why demand for redistribution on average does not respond to information on … observed unresponsiveness of demand for redistribution may result because the group which drives the effect on beliefs does not … increase demand for redistribution and may even decrease it. Indeed, despite the strong perception shift in the high …
Persistent link: https://www.econbiz.de/10014321966
Most studies show that the present generation has to take the burden and reduce consumption to mitigate future climate change. However, significant climate change is due to a market failure, and corrections of market failures give possibilities of Pareto improvements. In this paper, we study the...
Persistent link: https://www.econbiz.de/10011309590
In most OECD countries, pension reform policy has decreased the level of intragenerational redistribution over the last … three decades, that is, redistribution among members of the same generation with high and low pension entitlements. This … relationship between inequality of entitlements, mortality risk, and the size of redistribution in a stylized social security …
Persistent link: https://www.econbiz.de/10013174148
Recent books by Thomas Piketty (Piketty, 2014) and Anthony Atkinson (Atkinson, 2015) have brought the annual wealth tax back on the policy agenda. Both authors suggest using the annual wealth tax to supplement the redistributional effects of the income tax, assigning it a role as a...
Persistent link: https://www.econbiz.de/10011717186
This paper analyses the importance of fiscal mechanisms for regional risk sharing and redistribution in Switzerland …
Persistent link: https://www.econbiz.de/10011795017
We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by …-efficient households if and only if social inequality aversion is sufficiently high. We further find that redistribution of carbon tax …
Persistent link: https://www.econbiz.de/10012485343