Progressive taxation in a dynastic model of human capital

• 成果类型: Article
• 署名作者: Erosa, Andres; Koreshkova, Tatyana
• 署名单位: University of Toronto; University System of Ohio; Oberlin College; University of Toronto; Concordia University - Canada
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2006.01.005
• 发表日期: 2007
• 页码: 667-685
• 关键词: taxation; human capital; Heterogeneity; intergenerational mobility

摘要

We develop a quantitative theory of economic inequality to investigate the effects of replacing the current U.S. progressive income tax system with a proportional one. The cross-sectional implications of the theory are used to discipline the assessment of the effects of tax policy and circumvent the lack of conclusive micro-evidence on the parameterization of the human capital production technology. We find that the elimination of progressive taxation increases steady state level of output by 12.6%, capital by 21.8%, and consumption by 13.2%. Moreover, it increases economic inequality and its persistence across generations. (c) 2006 Elsevier B.V. All rights reserved.