Please use this identifier to cite or link to this item:
http://hdl.handle.net/20.500.11889/2729
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Ismael, Mohanad | - |
dc.date.accessioned | 2016-10-15T08:53:37Z | - |
dc.date.available | 2016-10-15T08:53:37Z | - |
dc.date.issued | 2014 | - |
dc.identifier.uri | http://hdl.handle.net/20.500.11889/2729 | - |
dc.description.abstract | This paper aims to study the stability properties of a two-period overlapping generations model (OLG) with a progressive labor-income taxation rule. In this case, wage income tax rates are increasing with agent’s income. Each representative agent lives two periods: youth and adulthood. In the first period, agents choose labor supply and allocate their after-tax income between consumptions and savings (capital accumulations). In the second period, agents are retired and consume entirely their savings returns. It is shown that progressive labor-income taxation policy acts as a destabilizing factor in the sense that a higher progressivity makes the emergence of indeterminacy and endogenous fluctuations more likely. These fluctuations appear if the elasticity of capital-labor substitution is sufficiently low. Moreover, we show that saving rate widens the range of parameters giving rise to endogenous fluctuations. The analytical findings are completed by a numerical example | |
dc.language.iso | en | en_US |
dc.publisher | ELIT - Economic Laboratory for Transition Research | en_US |
dc.subject.lcsh | Progressive taxation | |
dc.subject.lcsh | Income tax | |
dc.subject.lcsh | Economic policy | |
dc.subject.lcsh | Taxation policy | |
dc.subject.lcsh | Endogenous labor supply | |
dc.subject.lcsh | Indeterminacy | |
dc.subject.lcsh | Overlapping generations | |
dc.title | Progressive income taxes and macroeconomic instability | en_US |
newfileds.item-access-type | open_access | en_US |
newfileds.general-subject | Economics | en_US |
item.fulltext | With Fulltext | - |
item.languageiso639-1 | other | - |
item.grantfulltext | open | - |
Appears in Collections: | Fulltext Publications |
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