Taxation of Consumption and Labor Income: A Quantitative Approach

• 成果类型: Article
• 署名作者: Parodi, Francesca
• 署名单位: Collegio Carlo Alberto; Catholic University of the Sacred Heart; University of Turin
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20200289
• 发表日期: 2023
• 页码: 177-216
• 关键词: life-cycle; Commodity taxation; fiscal-policy; tax; demand; uncertainty; education; WEALTH

摘要

I quantitatively characterize optimal consumption and labor income taxes in a structural life-cycle model of household consumption, sav-ing, and employment choices that allows for irreversibility of dura-ble goods and preference heterogeneity. I find that durables should be subsidized and nondurables should be taxed at a uniform rate. The durable subsidy is driven by the life-cycle features of the model together with durables' irreversibility and borrowing constraints. Uniform taxation on nondurables holds under exogenous and endogenous-fully or weakly separable-labor supply and it relies on homogeneity of intertemporal preferences. Allowing for govern-ment's equity concerns, I show that the model rationalizes the tax practice. (JEL D15, G51, H21, H23, H24, H31, J22)