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- Aronsson, Thomas, 1963-, et al.
(författare)
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Veblen’s theory of the leisure class revisited : Implications for optimal income taxation
- 2010
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Almost all previous studies on public policy under relative consumption concerns have ignored the role of leisure for status comparisons. Inspired by Veblen (1899), this paper considers a two-type optimal income tax model, where people care about their relative consumption, and where the importance of relative consumption increases with the use of leisure due to increased consumption visibility. We show that increased consumption positionality typically implies higher marginal income tax rates for both ability-types. Using a leisure-weighted measure of reference consumption, rather than a measure where leisure plays no role as in the previous literature, increases the marginal income tax rate implemented for the low-ability type and decreases the marginal income tax rate implemented for the high-ability type, i.e., it gives rise to a regressive tax component.
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| 2. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Optimal tax progression : does it matter whether wage bargaining is decentralized or centralized?
- 2011
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- We study how the optimal use of labor income tax progression depends on whether the wage bargaining system is decentralized or centralized. Assuming a nonlinear labor income tax and an unrestricted profit tax, we show that a Utilitarian government is able to implement the first best resource allocation with a zero marginal labor income tax rate under decentralized wage bargaining, whereas centralized bargaining typically implies a progressive tax as well as unemployment. However, if the government and a (central) wage-setter bargain over wage formation and public policy, the resulting equilibrium is characterized by full employment and a zero marginal tax rate.
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| 3. |
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| 4. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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State-variable public goods when relative consumption matters : a dynamic optimal taxation approach
- 2011
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper concerns the optimal provision of a state-variable public good, where the global climate is the prime example. The analysis is based on a two-type optimal income tax model with overlapping generations, where people care about their relative consumption. We consider both keeping-up-with-the-Joneses preferences (where people compare their own current consumption with others’ current consumption) and catching-up-with-the-Joneses preferences (where people compare their own current consumption with others’ past consumption). The extent to which the rule for public provision ought to be modified is shown to depend crucially on the preference elicitation format.
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| 5. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Technology transfers and the clean development mechanism in a north-south general equilibrium model
- 2010
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Ingår i: Resources and Energy Economics. - : Elsevier. - 0928-7655 .- 1873-0221. ; 32:3, s. 292-309
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Tidskriftsartikel (övrigt vetenskapligt/konstnärligt)abstract
- This paper analyses the potential welfare gains of introducing a technology transfer from Annex I to non-Annex I in order to mitigate greenhouse gas emissions. Our analysis is based on a numerical general equilibrium model for a world-economy comprising two regions; North (Annex I) and South (non-Annex I). In a cooperative equilibrium, a technology transfer from the North to the South is clearly desirable from the perspective of a ‘global social planner’, since the welfare gain for the South outweighs the welfare loss for the North. However, if the regions do not cooperate, then the incentives to introduce the technology transfer appear to be relatively weak from the perspective of the North; at least if we allow for Southern abatement in the pre-transfer Nash equilibrium. Finally, by adding the emission reductions associated with the Kyoto agreement, our results show that the technology transfer leads to higher welfare in both regions.
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