| 1. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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A Note on Optimal Taxation, Status Consumption, and Unemployment
- 2020
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Existing research on optimal taxation in economies with status-driven relative consumption assumes that the labor market is competitive, despite the fact that real world labor markets are typically characterized by involuntary unemployment. We show how the marginal tax policy ought to be modified to simultaneously account for positional consumption externalities and equilibrium unemployment, and find that interaction effects between these two market failures are crucial determinants of the marginal tax structure. In certain cases, the policy incentive to tax away positional externalities vanishes completely, and negative positional externalities may even lead to lower marginal taxation, under involuntary unemployment.
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| 2. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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A note on optimal taxation, status consumption, and unemployment
- 2021
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Ingår i: Journal of Public Economics. - : Elsevier BV. - 0047-2727 .- 1879-2316. ; 200
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Tidskriftsartikel (refereegranskat)abstract
- Existing research on optimal taxation in economies with status-driven relative consumption (implicitly) assumes that there is no involuntary unemployment, despite ample evidence that real world labor markets are typically characterized by such unemployment. We show how the marginal tax policy ought to be modified to simultaneously account for positional consumption externalities and equilibrium unemployment, and find that interaction effects between these two market failures are crucial determinants of the marginal tax structure. In certain cases, the policy incentive to tax away positional externalities vanishes completely, and negative positional externalities may even lead to lower marginal taxation, under involuntary unemployment. (c) 2021 Elsevier B.V. All rights reserved.
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| 3. |
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| 4. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Charity, Status, and Optimal Taxation: Welfarist and Non-Welfarist Approaches
- 2021
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper analyzes optimal taxation of charitable giving to a public good in a Mirrleesian framework with social comparisons. Leisure separability together with zero transaction costs of giving imply that charitable giving should be subsidized to such an extent that governmental contributions are completely crowded out, regardless of whether the government acknowledges warm glows of giving. Stronger concerns for relative charitable giving and larger transaction costs support lower marginal subsidies, whereas relative consumption concerns work in the other direction. A dual screening approach, where charitable giving constitutes an indicator of wealth, is also presents. Numerical simulations supplement the theoretical results.
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| 5. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Inequality Aversion, Externalities, and Pareto-Efficient Income Taxation
- 2020
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- This paper analyzes Pareto-efficient marginal income taxation taking into account externalities induced through individual inequality aversion, meaning that people have preferences for equality. In doing so, we distinguish between four different and widely used models of inequality aversion. The results show that empirically and experimentally quantified degrees of inequality aversion have potentially very strong implications for Pareto-efficient marginal income taxation. It also turns out that the type of inequality aversion (self-centered vs. non-self-centered), and the specific measures of inequality used, matter a great deal. For example, based on simulation results mimicking the disposable income distribution in the U.S., the preferences suggested by Fehr and Schmidt (1999) imply monotonically increasing marginal income taxes, with large negative marginal tax rates for low-income individuals and large positive marginal tax rates for high-income ones. In contrast, the in many respects comparable model by Bolton and Ockenfels (2000) implies close to zero marginal income tax rates for all.
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| 6. |
- Aronsson, Thomas, 1963-, et al.
(författare)
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Optimal Second-Best Taxation When Individuals Have Social Preferences
- 2020
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Rapport (övrigt vetenskapligt/konstnärligt)abstract
- Models where people derive well-being from motives other than material self-interest – including those rooted in status concerns – are surprisingly scarce in the study of optimal redistributive taxation. In fact, despite extensive evidence from experimental research, other-regarding behavior driven by prosocial preferences is more or less absent in this literature. The purpose of the present paper is to start filling this gap by analyzing the implications of prosocial preferences related to equality and efficiency for optimal income taxation. In doing so, we take a broad perspective by examining three well-known models of social preferences developed by Fehr and Schmidt (1999), Bolton and Ockenfels (2000), and Charness and Rabin (2002), respectively. Our contribution is to analyze the implications of these three social preference models for optimal redistributive income taxation based on a discrete version of the Mirrleesian (1971) framework of optimal nonlinear income taxation. We find that social preferences may have a considerable impact on the structure of marginal income taxation, and that interactions between externality correction and redistributive aspects of taxation are likely to play an important role for the optimal tax structure.
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| 7. |
- Aronsson, Thomas, et al.
(författare)
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Optimal Taxation and Other-Regarding Preferences
- 2023
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- The present paper analyzes optimal redistributive income taxation in a Mirrleesian framework extended with other-regarding preferences at the individual level. We start by developing a general model where the other-regarding preference component of the utility functions is formulated to encompass almost any form of preferences for other people’s disposable income, and then continue with four prominent special cases. Two of these reflect self-centered inequality aversion, based on Fehr and Schmidt (1999) and Bolton and Ockenfels (2000), whereas the other two reflect non-self-centered inequality aversion, where people have preferences for a low Gini coefficient and a high minimum income level in society, respectively. We find that other-regarding preferences may substantially increase the marginal tax rates, including the top rates, and that different types of other-regarding preferences have very different implications for optimal taxation.
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| 8. |
- Carlsson, Fredrik, 1968, et al.
(författare)
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How Much Liberty Should We Have? Citizens versus Experts on Regulating Externalities and Internalities
- 2024
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- Based on a tailor-made survey, we find that experts – academics and civil servants – are much more willing than citizens in Sweden to accept liberty-reducing regulations. Moreover, both citizens and experts are more supportive of regulating negative internalities (in terms of health) than negative externalities (in terms of climate change). While less liberty-reducing policy instruments receive more support, around 20 percent of citizens and experts support very intrusive measures such as non-transferable individual quotas for air travel and unhealthy foods. Both experts and citizens prefer encouraging to discouraging information provision, while experts are more positive than citizens to tax instruments
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| 9. |
- Carlsson, Fredrik, 1968, et al.
(författare)
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The Use of Green Nudges as an Environmental Policy Instrument
- 2021
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Ingår i: Review of Environmental Economics and Policy. - : University of Chicago Press. - 1750-6816 .- 1750-6824. ; 15:2, s. 216-237
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Tidskriftsartikel (refereegranskat)abstract
- This article discusses the use of green nudges—behavioral interventions aimed at reducing negative externalities—as an environmental policy instrument. We present a new framework for classifying nudges according to how they affect behavior. Pure nudges change the choice environment to guide behavior unobtrusively. Moral nudges trigger a psychological reaction to encourage behavior change. Our review of empirical studies reveals that green nudges, pure or moral, can have a significant impact on behavior and the environment but that the effects are highly context dependent. On the basis of both our review and basic welfare economics models, we discuss key factors for policy makers to consider when choosing between implementing a green nudge and implementing conventional policy instruments.
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| 10. |
- Dannenberg, Astrid, et al.
(författare)
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Status for the good guys: An experiment on charitable giving
- 2022
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Ingår i: Economic Inquiry. - : Wiley. - 0095-2583 .- 1465-7295. ; 60:2, s. 721-740
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Tidskriftsartikel (refereegranskat)abstract
- We study the social status motive in an experiment at an art-house cinema in Germany where movie-goers can make monetary contributions to help the cinema become climate neutral. Our key result is that offering high contributors a "social status gift" that displays their good deed increases both the likelihood of a high contribution and mean contributions. It performs significantly better than previously studied mechanisms, such as the removal of anonymity, the provision of a reference point, or a neutral thank-you gift, and it also performs better than offering high contributors publicity through social media.
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| 11. |
- Dufwenberg, Martin, 1964, et al.
(författare)
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Mean markets or kind commerce?
- 2022
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Ingår i: Journal of Public Economics. - : Elsevier BV. - 0047-2727. ; 209
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Tidskriftsartikel (refereegranskat)abstract
- Does market interaction influence morality? We study a particular angle of this classic question theoret-ically and experimentally. The novelty of our approach is to posit that people are motivated by reciprocity - an urge many argue affects humans. While many have suggested that market interactions make people more selfish, our reciprocity-based theory allows that market interaction on the contrary induces more prosociality. Our experiment provides a test of the empirical relevance of such an effect, in some highly stylized settings. The results are broadly (but not completely) supportive. They may shed light on the development of morality and prosocial behavior over time, with respect to episodes in history where the nature of commerce was transformed.(c) 2022 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
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| 13. |
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| 14. |
- Sterner, Thomas, 1952, et al.
(författare)
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Funding Inclusive Green Transition through Greenhouse Gas Pricing : Carbon Pricing
- 2020
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Ingår i: ifo DICE Report. - 2511-7815. ; 18:1, s. 3-8
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Tidskriftsartikel (refereegranskat)abstract
- 2015 was a special year. During a few months the political stars aligned and made it possible for the international community to agree on the Agenda 2030 for Sustainable Development and the Paris Agreement to limit global warming. Now the signatories need to find ways to implement these agreements, which not only imply a deep decarbonization of the economy but must also meet the Sustainable Development Goals. In this article we discuss the importance of pricing greenhouse gas (GHG) emissions2 to make this happen. Climate abatement is a truly global public good and so we actually have to have a functioning policy in all countries. Our interest is thus on pricing in all countries but in particular the developing countries that are bigger and most crucial to the struggle for a green transition.
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