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| Author | : Putz, Christian |
| Publisher | : University of Bamberg Press |
| Total Pages | : 359 |
| Release | : 2019 |
| Genre | : Political Science |
| ISBN | : 3863097025 |
| Author | : Ozlem Kina |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2023 |
| Genre | : |
| ISBN | : |
This thesis is composed of three essays, and contributes to the literature on optimal design of tax and transfers schemes in heterogeneous agents general equilibrium models. In the first chapter, Redistributive Capital Taxation Revisited, coauthored with Ctirad Slavik and Hakki Yazici, we use a rich quantitative model with endogenous skill acquisition to show that capital-skill complementarity provides a quantitatively significant rationale to tax capital for redistributive governments. The optimal capital income tax rate is 67%, while it is 61% in an identically calibrated model without capital-skill complementarity. The skill premium falls from 1.9 to 1.84 along the transition following the optimal reform in the capital-skill complementarity model, implying substantial indirect redistribution from skilled to unskilled workers. These results show that a redistributive government should take into account capital-skill complementarity when taxing capital. In the second chapter, Optimal Taxation of Automation, I focus on the asymmetric effects of automation on labor markets. I provide a general equilibrium model that distinguishes between low-and high-skill automation to study optimal taxation of those technologies. Low-skill (high-skill) automation generates a downward pressure on low-skill (high-skill) wages. Modeling the two types of automation is important as both are empirically relevant, and each has a different impact on wages of workers with different skill types. I calibrate the model to the US economy along several dimensions, and find that for a given level of technology, it is optimal to distort automation adoption in order to compress wage inequality and increase labor share of income to provide redistribution. In particular, it is optimal to tax low-skill automation while subsidize high-skill automation when the transitional dynamics are taken into account. As a result, consumption inequality and both before and after-tax income inequality decline and labor share of income increases relative to status-quo over transition. In the third chapter, On the Implications of Unemployment Insurance and Universal Basic Income in a Frictional Labor Market, I revisit the efficiency and equality considerations regarding the optimal provision of unemployment insurance (UI) benefits when workers' outside options vary substantially. The chapter aims to make comparisons between UI and universal basic income (UBI) policies to investigate whether UBI could be a tool to improve workers' hand in the wage setting and how transfers to unemployed -UI or UBI - and taxes impact the wage setting outcome across income distribution.
| Author | : Roland Benabou |
| Publisher | : |
| Total Pages | : 76 |
| Release | : 2000 |
| Genre | : Distributive justice |
| ISBN | : |
This paper studies the effects of progressive income taxes and education finance in a dynamic heterogeneous agent economy. Such redistributive policies entail distortions to labor supply and savings, but also serve as partial substitutes for missing credit and insurance markets. The resulting tradeoffs for growth and efficiency are explored, both theoretically and quantitatively, in a model which yields complete analytical solutions. Progressive education finance always leads to higher income growth than taxes and transfers, but at the cost of lower insurance. Overall efficiency is assessed using a new measure which properly reflects aggregate resources and idiosyncratic risks but, unlike a standard social welfare function, does not reward equality per se. Simulations using empirical parameter estimates show that the efficiency costs and benefits of redistribution are generally of the same order of magnitude, resulting in reasonable values for the optimal rates. Aggregate income and aggregate welfare provide only very crude lower and upper bounds around the true efficiency tradeoff.
| Author | : Narayana R. Kocherlakota |
| Publisher | : Princeton University Press |
| Total Pages | : 230 |
| Release | : 2010-07-01 |
| Genre | : Business & Economics |
| ISBN | : 1400835275 |
Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are bad insofar as they discourage people from working, but good to the degree that, by redistributing wealth, they help insure people against productivity shocks. Until recently, however, economic research on this question either ignored people's uncertainty about their future productivities or imposed strong and unrealistic functional form restrictions on taxes. In response to these problems, the new dynamic public finance was developed to study the design of optimal taxes given only minimal restrictions on the set of possible tax instruments, and on the nature of shocks affecting people in the economy. In this book, Narayana Kocherlakota surveys and discusses this exciting new approach to public finance. An important book for advanced PhD courses in public finance and macroeconomics, The New Dynamic Public Finance provides a formal connection between the problem of dynamic optimal taxation and dynamic principal-agent contracting theory. This connection means that the properties of solutions to principal-agent problems can be used to determine the properties of optimal tax systems. The book shows that such optimal tax systems necessarily involve asset income taxes, which may depend in sophisticated ways on current and past labor incomes. It also addresses the implications of this new approach for qualitative properties of optimal monetary policy, optimal government debt policy, and optimal bequest taxes. In addition, the book describes computational methods for approximate calculation of optimal taxes, and discusses possible paths for future research.
| Author | : Robert J. Barro |
| Publisher | : Harvard University Press |
| Total Pages | : 400 |
| Release | : 1990 |
| Genre | : Business & Economics |
| ISBN | : 9780674540804 |
This is a collection of 13 papers by a leading proponent of new classical macroeconomics, published between 1981 and 1989. The papers are classified into three topical groups. The five papers in the first section, "Rules versus Discretion," provide an overview of the models and ideas that have been deployed in this policy debate. The next three papers investigate the impact of changes in the money supply on business cycles. The third category contains five papers that address various issues in fiscal policy. Of particular note is Barro's 1989 paper on the resuscitation of the Ricardian equivalence theorem. ISBN 0-674-54080-8: $37.50.
| Author | : Albert J. Lee |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 72 |
| Release | : 2011-10-07 |
| Genre | : Business & Economics |
| ISBN | : 1461412900 |
The causal relationship between growth and inequality is complex, and there have been many scholarly works to study this relationship since the seminal work of Kuznets in the 1950s. Few recent studies in this field have shown that the nature of relationship is multifaceted and non-linear. In addition to the intrinsic non-linear nature of the relationship, government and institutions play pivotal role in distributing the benefits of growth to reduce inequality. The responsiveness greatly depends upon a country’s initial conditions in terms of inequality and the nature of democracy prevailing in the country. This volume highlights the role of institutions in explaining the gulf between inequality and growth, by applying a dynamic general equilibrium framework and by utilizing econometric techniques. Econometrically two important hypotheses are tested. First, assuming there is no difference in institutions, the growth rate increases as inequality decreases. Second, assuming inequality remains unchanged, improvement in the integrity of fiscal institutions results in higher economic growth. Integrating theoretical and empirical approaches, this volume links crucial economic concepts in a novel way, and goes beyond academic analysis to suggest policy implications, and will serve as a valuable resource for scholars and policymakers alike in the fields of economic growth and development, public policy, and economic modeling.
| Author | : Burkhard Heer |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 719 |
| Release | : 2011-10-20 |
| Genre | : Business & Economics |
| ISBN | : 3540856846 |
Modern business cycle theory and growth theory uses stochastic dynamic general equilibrium models. In order to solve these models, economists need to use many mathematical tools. This book presents various methods in order to compute the dynamics of general equilibrium models. In part I, the representative-agent stochastic growth model is solved with the help of value function iteration, linear and linear quadratic approximation methods, parameterised expectations and projection methods. In order to apply these methods, fundamentals from numerical analysis are reviewed in detail. In particular, the book discusses issues that are often neglected in existing work on computational methods, e.g. how to find a good initial value. In part II, the authors discuss methods in order to solve heterogeneous-agent economies. In such economies, the distribution of the individual state variables is endogenous. This part of the book also serves as an introduction to the modern theory of distribution economics. Applications include the dynamics of the income distribution over the business cycle or the overlapping-generations model. In an accompanying home page to this book, computer codes to all applications can be downloaded.
| Author | : Burkhard Heer |
| Publisher | : Springer Nature |
| Total Pages | : 943 |
| Release | : |
| Genre | : Economic development |
| ISBN | : 3031516818 |
Contemporary macroeconomics is built upon microeconomic principles, with its most recent advance featuring dynamic stochastic general equilibrium models. The textbook by Heer and Maußner acquaints readers with the essential computational techniques required to tackle these models and employ them for quantitative analysis. This third edition maintains the structure of the second, dividing the content into three separate parts dedicated to representative agent models, heterogeneous agent models, and numerical methods. At the same time, every chapter has been revised and two entirely new chapters have been added. The updated content reflects the latest advances in both numerical methods and their applications in macroeconomics, spanning areas like business-cycle analysis, economic growth theory, distributional economics, monetary and fiscal policy. The two new chapters delve into advanced techniques, including higher-order perturbation, weighted residual methods, and solutions to high-dimensional nonlinear problems. In addition, the authors present further insights from macroeconomic theory, complemented by practical applications like the Smolyak algorithm, Gorman aggregation, rare disaster models and dynamic Laffer curves. Lastly, the new edition places special emphasis on practical implementation across various programming languages; accordingly, its accompanying web page offers examples of computer code for languages such as MATLAB®, GAUSS, Fortran, Julia and Python. "This book does not only an excellent job in explaining the existing tools, but it also teaches the reader on how to write his/her own programs and it provides the reader with the tools to help advance the state of the art of dynamic macroeconomics." Wouter J. Den Haan, London School of Economics ”... provides the reader with exactly the necessary computational tools to solve the dynamic general equilibrium models macroeconomists care about. It is therefore the perfect complement to Stokey, Lucas and Prescott's and Sargent and Ljungqvist's theoretical treatment of modern macroeconomics." Dirk Krueger, University of Pennsylvania.
| Author | : Mark Gertler |
| Publisher | : Mit Press |
| Total Pages | : 432 |
| Release | : 2004 |
| Genre | : Business & Economics |
| ISBN | : 9780262072533 |
The NBER Macroeconomics Annual presents pioneering work in macroeconomics by leading academic researchers to an audience of public policymakers and the academic community. Each commissioned paper is followed by comments and discussion. This year's edition provides a mix of cutting-edge research and policy analysis on such topics as productivity and information technology, the increase in wealth inequality, behavioral economics, and inflation.
| Author | : Daron Acemoglu |
| Publisher | : Cambridge University Press |
| Total Pages | : 567 |
| Release | : 2013-05-13 |
| Genre | : Business & Economics |
| ISBN | : 1107717817 |
This is the second of three volumes containing edited versions of papers and commentaries presented at invited symposium sessions of the Tenth World Congress of the Econometric Society, held in Shanghai in August 2010. The papers summarize and interpret key developments in economics and econometrics, and they discuss future directions for a wide variety of topics, covering both theory and application. Written by the leading specialists in their fields, these volumes provide a unique, accessible survey of progress on the discipline. The first volume primarily addresses economic theory, with specific focuses on nonstandard markets, contracts, decision theory, communication and organizations, epistemics and calibration, and patents.
