Efficient redistribution

• 成果类型: Article
• 署名作者: Boar, Corina; Midrigan, Virgiliu
• 署名单位: New York University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2022.07.003
• 发表日期: 2022
• 页码: 78-91
• 关键词: inequality; redistribution; Tax policy

摘要

What is the optimal shape of non-linear income and wealth taxes? We answer this question using a dynamic general equilibrium model with uninsurable idiosyncratic risk. Our analysis reproduces the distribution of income and wealth in the United States and takes into account the long-lived transition dynamics after policy reforms. We find that a uniform flat tax on capital and labor income combined with a lump-sum transfer is nearly optimal. The incremental welfare gains from steeper marginal income and wealth taxes are small, especially when the planner has a strong preference for redistribution, due to strong behavioral and general equilibrium effects.(C) 2022 Published by Elsevier B.V.