Please use this identifier to cite or link to this item:
http://hdl.handle.net/20.500.11889/5390
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Ismael, Mohanad | |
dc.date.accessioned | 2018-03-07T10:46:27Z | |
dc.date.available | 2018-03-07T10:46:27Z | |
dc.date.issued | 2014-12 | |
dc.identifier.issn | 1800-6698 | |
dc.identifier.uri | http://hdl.handle.net/20.500.11889/5390 | |
dc.description.abstract | This paper aims to study the stability properties of a two-period over-lapping generations model 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. | en_US |
dc.language.iso | en_US | en_US |
dc.publisher | Ekonomska Laboratorija za Istrazivanje Tranzicije | en_US |
dc.subject | Income tax. | en_US |
dc.subject | Indeterminacy | en_US |
dc.subject | Overlapping generations | en_US |
dc.subject | Endogenous labor supply | en_US |
dc.title | Progressive income taxes and Macroeconomic Instability | en_US |
dc.type | Article | en_US |
newfileds.department | Business and Economics | en_US |
newfileds.item-access-type | open_access | en_US |
newfileds.thesis-prog | none | en_US |
newfileds.general-subject | Social Sciences | العلوم الإنسانية | en_US |
item.languageiso639-1 | other | - |
item.fulltext | With Fulltext | - |
item.grantfulltext | open | - |
Appears in Collections: | Public Relations |
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File | Description | Size | Format | |
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Ismael 2014.pdf | 217.52 kB | Adobe PDF | View/Open |
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