Progressive taxation in a tournament economy

• 成果类型: Article
• 署名作者: Carpenter, Jeffrey; Matthews, Peter Hans; Tabb, Benjamin
• 署名单位: Middlebury College; IZA Institute Labor Economics
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2016.08.008
• 发表日期: 2016
• 页码: 64-72
• 关键词: taxation; tournaments; public good; Real effort experiment

摘要

Not enough is known about the responsiveness of individuals, in particular those who work under different incentives, to changes in marginal tax rates. We ask whether changes in tax rates are less distortionary for workers engaged in a contest. To examine this potential rationale for a more progressive tax code, we first model the effort decisions of workers faced with progressive taxation under tournaments and piece rates. Because of the difficulty identifying any distortion that may be induced by the tax code in naturally occurring data, we then report on the results of a real-effort experiment based on this model. Consistent with a behavioral approach to public finance, we find that competitive tournament workers are less sensitive and hint, in our discussion, at the possible welfare benefits of progressive taxation in tournament economies. (C) 2016 Elsevier B.V. All rights reserved.