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How Should Capital Be Taxed? Theory and Evidence from Sweden

Bastani, Spencer; Waldenström, Daniel - 2018

This paper presents a comprehensive analysis of the role of capital taxation in advanced economies with a focus on the Swedish experience. We synthesize the existing theoretical literature, present facts about the capital stock and its distribution, review current capital tax practices and...

Persistent link: https://www.econbiz.de/10011873479

The vanishing bequest tax: the comparative evolution of bequest taxation in historical perspective

Bertocchi, Graziella - 2007

gradual reduction due to declining wealth inequality. A number of extensions to the basic model allow to match our theory with … determined not only by wealth inequality but also by sectoral reallocation from agriculture to manufacturing. The model shows … that the dynamics of capital accumulation induce a reduction of wealth inequality, which is further accelerated by the …

Persistent link: https://www.econbiz.de/10010267920

Anatomy of policy complementarities

Orszag, Jonathan Michael; Snower, Dennis J. - 1999

The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the disappointingly small effect of many past reform measures on unemployment, and the political difficulties in implementing more extensive reform programs. We argue that the heart of...

Persistent link: https://www.econbiz.de/10010273118

Cognitive Ability and Paternalism

Saint-Paul, Gilles - 2002

This paper analyses the welfare effects of price restrictions on private contracting in a world where agents have a limited cognitive ability. People compute the costs and benefits of entering a transaction with an error. The government knows the distribution of true costs and benefits as well...

Persistent link: https://www.econbiz.de/10010262616

The Complexity of Economic Policy: I. Restricted Local Optima in Tax Policy Design

Saint-Paul, Gilles - 2002

Economists traditionally tackle normative problems by computing optimal policy, i.e. the one that maximizes a social welfare function. In practice, however, a succession of marginal changes to a limited number of policy instruments are implemented, until no further improvement is feasible. I...

Persistent link: https://www.econbiz.de/10010262772

Relational contracts, taxation and the household

Apps, Patricia; Rees, Ray - 2009

This paper applies the theory of relational contracts to make precise the idea that because households are engaged in a …

Persistent link: https://www.econbiz.de/10010269303

Accounting for family background when designing optimal income taxes: a microeconometric simulation analysis

Aaberge, Rolf; Colombino, Ugo - 2009

The purpose of this paper is to introduce and adopt a generalised version of Roemer's (1998) Equality of Opportunity (EOp) framework, which we call extended EOp, for analysing second-best optimal income taxation. Unlike the pure EOp criterion of Roemer (1998) the extended EOp criterion allows...

Persistent link: https://www.econbiz.de/10010269427

Optimal Redistributive Taxation in a Search Equilibrium Model

Hungerbühler, Mathias; Lehmann, Etienne; Parmentier, Alexis - 2005

This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to their efficient...

Persistent link: https://www.econbiz.de/10010276950

Value-added Tax versus Social Security Contributions

Goerke, Laszlo - 1999

In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by efficiency wages, it is shown that a balanced-budget shift...

Persistent link: https://www.econbiz.de/10010262282

Corporate and personal income tax declarations

Goerke, Laszlo - 2006

Decisions by firms and individuals on the extent of their tax payments have generally been treated as separate choices. Empirically, a positive relationship between corporate and personal income tax evasion can be observed. The theoretical analysis in this paper shows that a manager's decision...

Persistent link: https://www.econbiz.de/10010267981