How taxation influences income mobility is largely a neglected topic. In this study we discuss the relationship between taxation and income mobility by analyzing both macro and micro data. Administrative register data based on income tax returns are used to produce individual and aggregate...

Microsimulation models of the LOTTE system are key tools for tax policy-making in Norway and are extensively used in the budget process. The aim of this paper is to give an overview of the different modules in the LOTTE family - a non-behavioral tax-benefit model for personal income tax...

This paper focuses on the measurement of progressivity and the distributional effect of the Norwegian tax reform of 1992. Progressivity is measured by the degree of disproportionality, which implies that the burden of taxes is estimated when income units are ranked according to pre-tax incomes....

The purpose of this paper is to introduce and adopt a generalised version of Roemer's (1998) Equality of Opportunity (EOp) framework for analysing optimal income taxation. EOp optimal tax rules seek to equalise income differentials arising from factors beyond the control of the individual....

Nielsen and Sørensen (1997) find that progressive taxation of labour income is optimal when capital income is taxed. This paper shows that their main result still holds when introducing endogenous choice of occupation, individuals with non- pecuniary preferences for one type of occupation, and...

This article describes the consumption model and inequality study of Chapter 2 in the author's unpublished Ph.D. dissertation submitted at the Dept. of Economics, University of California, Berkeley. The Norwegian Research Council and Statistics Norway financed the project; project no....

The inequality in pre-tax income increases in Norway in the 1990s, while the distribution of taxes is about unaltered. This means that tax progressivity has decreased in the period, as measured by summary indices of tax progressivity. This paper discusses to what extent this observed decrease in...

This paper examines the effect of taxes on the individuals' choices of educational direction, and thus on the economy's skill composition. A proportional labour income tax induces too many workers with high innate ability to choose an educational type with high consumption value and low effort...

The analysis contrasts results of two recently expounded micro-level data approaches to derive robust intertemporal characterizations of redistributional effects of income tax schedules; the fixed-income procedure of Kasten, Sammartino and Toder (1994) and the transplant-and-compare method of...

Differentiated tax rates on labor and capital income are found to be optimal in this study, where agents choose occupation based on lifetime income net of tuition costs. Efficient revenue raising in a case where the government can not observe educational effort implies that the government should...