Bastani, Spencer
[Verfasser:in]
;
Blomquist, Soren
[Sonstige Person, Familie und Körperschaft];
Micheletto, Luca
[Sonstige Person, Familie und Körperschaft]
The Welfare Gains of Age Related Optimal Income Taxation
Erschienen in:CESifo Working Paper Series ; No. 3225
Umfang:
1 Online-Ressource (53 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1698630
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 27, 2010 erstellt
Beschreibung:
Using a calibrated overlapping generations model we quantify the welfare gains of an age dependent income tax. Agents face uncertainty regarding future abilities and can by saving transfer consumption across periods. The welfare gain of switching from an age-independent to an age-dependent nonlinear tax amounts in our benchmark model to around three percent of GDP. The gains are particularly high when there are restrictions on debt policy. The gains of using a nonlinear- as opposed to a linear tax are even larger. Surprisingly, it is of secondary importance to optimally choose the tax on interest income