uu.seUppsala University Publications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Welfare Gains Of Age-Related Optimal Income Taxation
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
2013 (English)In: International Economic Review, ISSN 0020-6598, E-ISSN 1468-2354, Vol. 54, no 4, 1219-1249 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2013. Vol. 54, no 4, 1219-1249 p.
National Category
Social Sciences Economics and Business
Identifiers
URN: urn:nbn:se:uu:diva-211438DOI: 10.1111/iere.12034ISI: 000326107700007OAI: oai:DiVA.org:uu-211438DiVA: diva2:667611
Available from: 2013-11-27 Created: 2013-11-25 Last updated: 2017-12-06Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Authority records BETA

Bastani, SpencerBlomquist, Sören

Search in DiVA

By author/editor
Bastani, SpencerBlomquist, Sören
By organisation
Department of EconomicsUppsala Center for Fiscal Studies
In the same journal
International Economic Review
Social SciencesEconomics and Business

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 368 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf