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This paper analyzes voting on a linear income tax which is redistributed lump sum to the taxpayers. Individuals can evade taxes, which leads to penalties if evasion is detected. Since preferences satisfy neither single peakedness nor single crossing, an equilibrium may not exist. When it does...
Persistent link: https://www.econbiz.de/10011437454
Using a laboratory experiment, we present first evidence that social image concerns causally reduce the take-up of an individually beneficial transfer. Our design manipulates the informativeness of the take-up decision by varying whether transfer eligibility is based on ability or luck, and how...
Persistent link: https://www.econbiz.de/10011890164
lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and-transfer system …
Persistent link: https://www.econbiz.de/10011780780
The estimation of the costs of conflict is currently receiving a lot of attention in the literature. This paper aims to give a thorough overview of the existing literature, first by addressing the history of case studies that address conflict costs and second by looking at the existing body of...
Persistent link: https://www.econbiz.de/10003898591
benefits are not dependent upon income, this implies a redistribution from high to low earners. An exception can be found in … combination of health insurance and income redistribution leads to an expansion or a contraction of the size of a public health … redistribution tends to expand the size of a public health insurance system. The predictions of the model are confronted with …
Persistent link: https://www.econbiz.de/10011434277
This paper generalizes the analysis of distributive conflict, politics, and growth developed by by Alesina-Rodrik (1994). We construct a heterogenous-agent framework in which both growth and the distribution of wealth are endogenous. Due to adjustments in the distribution of wealth, the...
Persistent link: https://www.econbiz.de/10011437002
In this study, we set up a DSGE model with upward looking consumption comparison and show that consumption externalities are an important driver of consumer credit dynamics. Our model economy is populated by two different household types. Investors, who hold the economy's capital stock, own the...
Persistent link: https://www.econbiz.de/10012041964
the system of financial support for families with children. We focus on: 1) the trade-off between redistribution of income …
Persistent link: https://www.econbiz.de/10009779810
We link life-satisfaction data to inequality of the pre-government income distribution at the regional level, to estimate the degree of inequality aversion. In addition, we investigate whether a reduction in inequality by the state increases individual well-being. We find that Germans are...
Persistent link: https://www.econbiz.de/10011436192
This study uses German social security records to provide novel evidence about the heterogeneity in life expectancy by lifetime earnings and, additionally, documents the distributional implications of this earnings-related heterogeneity. We find a strong association between lifetime earnings and...
Persistent link: https://www.econbiz.de/10011746805