| 1. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Positional concerns in an OLG model : optimal labor and capital income taxation
- 2010
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Ingår i: International Economic Review. - Malden : Wiley-Blackwell. - 0020-6598 .- 1468-2354. ; 51:4, s. 1071-1095
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Tidskriftsartikel (refereegranskat)abstract
- This article concerns optimal income taxation under asymmetric information in a two-type OLG model when individuals' relative consumption matters. Positional concerns affect the policy choices via two channels: (i) the average degree of positionality and (ii) positionality differences between the low-ability type and the mimicker. Under plausible empirical estimates, the marginal labor income tax rates become substantially larger, and the absolute value of the marginal capital income tax rate of the low-ability type becomes substantially smaller, than in the conventional model. In addition to measures of reference consumption based on average consumption, we also address within-generation and upward comparisons.
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| 2. |
- Aronsson, Thomas, 1963-
(författare)
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Social accounting and the Public sector
- 2008
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Ingår i: International Economic Review. - : John Wiley & Sons. - 1468-2354 .- 0020-6598. ; 49:1, s. 349-375
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Tidskriftsartikel (refereegranskat)abstract
- This article contributes to the theory of social accounting. As such, it tries to extend earlier literature on the welfare equivalence of the comprehensive net national product in two main directions, both of which refer to the public sector. One is by considering welfare measurement problems associated with public good provision and redistributive policy, respectively, when the public revenues are raised by distortionary taxes. The other is by addressing the consequences of a “federation-like” decision structure, where independent tax and expenditure decisions are made both by the central government and by lower level governments.
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| 3. |
- Blomquist, Sören, et al.
(författare)
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Nonlinear income taxation and matching grants in a federation with decentralized in-kind transfers
- 2009
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Ingår i: International Economic Review. - : Wiley. - 0020-6598 .- 1468-2354. ; 50:2, s. 543-575
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Tidskriftsartikel (refereegranskat)abstract
- We extend to a fiscal federalism setting the literature on redistributive in-kind transfers in the presence of nonlinear income taxation. Local governments have a cost advantage, motivating decentralization of the in-kind transfer. The cost structure varies across regions, and the central government cannot observe which region is which. We show that decentralized in-kind transfers can, in this setting, be an even more important instrument for relaxing self-selection constraints, thus, helping redistribution, than in single-government models. We characterize the optimal marginal tax rates and matching grants. The grants have a very different structure than the one derived in earlier studies.
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| 4. |
- Domeij, David, et al.
(författare)
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On The Distributional Effects Of Reducing Capital Taxes
- 2004
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Ingår i: International Economic Review. - : Blackwell Publishing Inc. - 1468-2354 .- 0020-6598. ; 45:2, s. 523-554
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Tidskriftsartikel (refereegranskat)abstract
- This article asks whether household heterogeneity and market incompleteness have quantitatively important implications for the welfare effects of tax changes. We compare a representative-agent economy to an economy in which households face idiosyncratic uninsurable income risk. The income process is consistent with empirical estimates and implies a realistic wealth distribution. We find that capital tax cuts imply large welfare gains in the representative-agent economy. However, when households are heterogeneous, substantial redistribution during transition means that only a minority will support capital tax cuts, whereas most households can expect large welfare losses.
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| 5. |
- Flodén, Martin, et al.
(författare)
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Population Aging and International Capital Flows
- 2006
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Ingår i: International economic review (Philadelphia). - : Blackwell Publishing Inc. - 1468-2354 .- 0020-6598. ; 47:3, s. 1013-1032
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Tidskriftsartikel (refereegranskat)abstract
- We use the neoclassical growth framework to model international capital flows in a world with exogenous demographic change. We compare model implications and actual current account data and find that the model explains a small but significant fraction of capital flows between OECD countries, in particular after 1985.
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| 6. |
- Olovsson, Conny
(författare)
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Why do Europeans Work so Little?
- 2009
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Ingår i: International Economic Review. - : Wiley. - 0020-6598 .- 1468-2354. ; 50:1, s. 39-61
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Tidskriftsartikel (refereegranskat)abstract
- Market work per person is roughly 10% higher in the United States than in Sweden. However, if we include the work carried out in home production, the total amount of work only differs by 1%. I set up a model and show that differences in policy—mainly taxes—can account for the discrepancy in both labor supply and home production between Sweden and the United States. These results are independent of the elasticity of labor supply.
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| 7. |
- Andersen, Steffen, et al.
(författare)
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Multiattribute Utility Theory, Intertemporal Utility, and Correlation Aversion
- 2018
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Ingår i: International Economic Review. - : Wiley-Blackwell Publishing Inc.. - 0020-6598 .- 1468-2354. ; 59:2, s. 537-555
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Tidskriftsartikel (refereegranskat)abstract
- Convenient assumptions about qualitative properties of the intertemporal utility function have generated counterintuitive implications for the relationship between atemporal risk aversion and the intertemporal elasticity of substitution. If the intertemporal utility function is additively separable, then the latter two concepts are the inverse of each other. We review a theoretical specification with a long lineage in the literature on multi-attribute utility and use this theoretical structure to guide the design of a series of experiments that allow us to identify and estimate intertemporal correlation aversion. Our results show that subjects are correlation averse over lotteries with intertemporal income profiles.
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| 8. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Genuine Saving and Positional Externalities
- 2017
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Ingår i: International Economic Review. - : Wiley. - 0020-6598 .- 1468-2354. ; 58:4, s. 1155-1190
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Tidskriftsartikel (refereegranskat)abstract
- Much evidence suggests that people are concerned with their relative consumption. Yet, positional externalities have so far been ignored in savings-based indicators of sustainable development. This article examines the implications of relative consumption concerns for measures of sustainable development by deriving analogues to genuine saving when people are concerned with their relative consumption. Unless the positional externalities have been internalized, an indicator of such externalities must be added to genuine saving to arrive at the proper measure of welfare change. We also show how relative consumption concerns affect the way public investment ought to be reflected in genuine saving.
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| 9. |
- Bastani, Spencer, et al.
(författare)
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Welfare Gains Of Age-Related Optimal Income Taxation
- 2013
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Ingår i: International Economic Review. - : Wiley. - 0020-6598 .- 1468-2354. ; 54:4, s. 1219-1249
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Tidskriftsartikel (refereegranskat)abstract
- Using an overlapping generations model with skill uncertainty and private savings, we quantify the gains of age-dependent labor income taxation. The total steady-state welfare gain of switching from age-independent to age-dependent nonlinear taxation varies between 2.4% and 4% of GDP. Part of the gain descends from relaxing incentive-compatibility constraints and part is due to capital-accumulation effects. The welfare gain is of about the same magnitude as that which can be achieved by moving from linear to nonlinear income taxation. Finally, the welfare loss from tax-exempting interest income is negligible under an optimal age-dependent labor income tax.
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| 10. |
- Fujiwara-Greve, Takako, et al.
(författare)
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Asymmetry of Customer Loss and Recovery under Endogenous Partnerships : Theory and Evidence
- 2016
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Ingår i: International Economic Review. - : Wiley. - 0020-6598 .- 1468-2354. ; 57:1, s. 3-30
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Tidskriftsartikel (refereegranskat)abstract
- This paper is inspired by real-world phenomena that rms lose customers based on impreciseinformation and take a long time to recover. If consumers are playing an ordinary repeated gamewith xed partners, there is no clear reason why recovery slowly happens. However, if consumers areplaying an endogenously repeated game, a class of simple efficient equilibria exhibits the asymmetryof fast loss of customers after a bad signal and slow recovery. Exit is systematic but formation of anew partnership is random. We also give empirical evidence of our equilibria at an individual-firm level.
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