Effective Tax Rates in Macroeconomics: Cross-Country Estimates of Tax   Rates on Factor Incomes and Consumption

Mendoza, Enrique G.; Razin, Assaf; Tesar, Linda L.

doi:10.3386/w4864

Cited by 572 publications

(828 citation statements)

References 8 publications

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“…of Mendoza, Razin, and Tesar (1994). Both my series using BEA data and McDaniel's series for the United States using OECD data exhibit a roughly parallel increase until 2000 followed by a noticeable decline in the early 2000s.…”

Section: Measurementmentioning

confidence: 69%

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The Labor Wedge: MRS vs. MPN

Karabarbounis¹

2013

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Do fluctuations of the labor wedge, defined as the gap between the firm's marginal product of labor (MPN) and the household's marginal rate of substitution (MRS), reflect fluctuations of the gap between the MPN and the real wage or fluctuations of the gap between the real wage and the MRS? For many countries and most forcefully for the United States, fluctuations of the labor wedge predominantly reflect fluctuations of the gap between the real wage and the MRS. As a result, business cycle theories of the labor wedge should primarily focus on improving the household side of the labor market. Explanations of the labor wedge based on departures of the representative firm's MPN from the real wage are rejected by the data because the labor share of income is not strongly procyclical.

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Section: Measurementmentioning

confidence: 69%

“…Following Mendoza, Razin, and Tesar (1994), I use national income accounts to measure effective average tax rates on consumption q c t and labor q n t . 8 To measure consumption taxes, I…”

Section: Measurementmentioning

confidence: 99%

The Labor Wedge: MRS vs. MPN

Karabarbounis¹

2013

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“…The updated version of Mendoza et al (1994) provides average labor income and average consumption tax figures for Canada, France, Germany, Italy, Japan, and the United Kingdom. Using PPP GDP as weights, we took the weighted average of these countries taxes and obtained τ lr = 36.39% and τ rr = 9.31%.…”

Section: Rest Of the Worldmentioning

confidence: 99%

“…Mendoza et al (1994) estimated tax rates on labor income and consumption for several OECD countries. In an updated version of their work (which is available at www.econ.duke.edu/˜mendonzae), they provided estimates for these variables for 1996.…”

Section: Appendixmentioning

confidence: 99%

The impacts of trade blocks and tax reforms on the Brazilian economy

Cunha¹,

Teixeira²

2004

Rev. Bras. Econ.

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This paper uses a general equilibrium model to evaluate the impacts of trade agreements and tax reforms on the Brazilian economy. The model predicts that welfare gains will happen whether Argentina reduces the tariffs it places on Brazilian products or the Free Trade Area of the Americas (FTAA) is implemented. However, the FTAA engenders larger welfare gains. These gains will be even larger if the FTAA is implemented simultaneously to a reduction on domestic consumption taxes. These findings suggest that most of the gains come from the reduction of Brazilian tariff and tax rates.Adota-se neste artigo um modelo de equilíbrio geral para avaliar os impactos de acordos comerciais e uma reforma tributária sobre a economia brasileira. O modelo prediz que ganhos de bemestar ocorrerão se a Argentina reduzir as tarifas sobre os produtos brasileiros ou se aÁrea de Livre Comércio das Américas (ALCA) for implementada. Contudo, a ALCA induz ganhos mais expressivos. Tais ganhos serão ainda maiores se a ALCA for implementada simultaneamente a uma redução do imposto sobre consumo. Essas conclusões sugerem que a maior parte dos ganhos decorrem de reduções nos impostos de importação e consumo existentes no Brasil.

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“…The tax rates τ w = 24.8% and τ r = 42.9% are computed as the average values of the effective US tax rates over the time period 1965-1988 that are reported by Mendoza, Razin, and Tesar (1994). Government transfers, tr, are computed using the equilibrium condition of the government budget (8).…”

Section: Government Policy and Social Securitymentioning

confidence: 99%

Optimal pensions in aging economies

Heer

2017

The B.E. Journal of Macroeconomics

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Abstract:We derive the optimal replacement ratio of the pay-as-you-go public pension system for the US economy in a life-cycle model that 1) replicates the empirical wage heterogeneity and 2) endogenizes the individual's labor supply decision. The optimal net pension replacement ratio is found to be in the range of 0%-43% depending on demographic parameters and, in particular, the Frisch labor supply elasticity. Reducing the pensions from the present to the optimal pension policies implies considerable welfare gains amounting to approximately 0.1%-4.1% of total consumption. The welfare increase is particularly pronounced for the greyer US population that is projected for the time after the demographic transition.

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Effective Tax Rates in Macroeconomics: Cross-Country Estimates of Tax Rates on Factor Incomes and Consumption

Abstract: All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including notice, is given to the source.

Cited by 572 publications

References 8 publications

The Labor Wedge: MRS vs. MPN

The Labor Wedge: MRS vs. MPN

The impacts of trade blocks and tax reforms on the Brazilian economy

Optimal pensions in aging economies

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