Endogenous longevity and optimal tax progressivity

Heer, Burkhard; Rohrbacher, Stefan

doi:10.1016/j.jhealeco.2021.102515

Cited by 5 publications

(2 citation statements)

References 40 publications

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“…The average life‐length in the OECD is 79 years, which corresponds to model age

T = 61

. I assume that half of the population is of low ability,

Λ = 0.5

(e.g., Golosov et al, 2013; Heer and Rohrbacher, 2021). The effects of changing the population composition are examined in Section 4.4.…”

Section: Calibration and Numerical Analysismentioning

confidence: 99%

Public pension policy and the equity–efficiency trade‐off^∗

Gustafsson

2023

Scandinavian J Economics

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This paper illustrates that the equity–efficiency trade‐off between a redistributive, Beveridgean, pension system and an earnings‐based, Bismarckian, scheme can collapse when accounting for labor supply effects on the extensive margins. I introduce a general equilibrium overlapping generations model with endogenous savings, human capital formation, and labor supply. The model is calibrated to an average OECD economy. The results suggest that allocating funds towards a Bismarckian pension system always reduces earnings inequality – and, in some cases, lifetime inequality – when compared with a Beveridgean scheme. However, the Bismarckian scheme crowds out more human capital in the economy following a higher steady‐state interest rate.

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“…The average life‐length in the OECD is 79 years, which corresponds to model age

T = 61

. I assume that half of the population is of low ability,

Λ = 0.5

(e.g., Golosov et al, 2013; Heer and Rohrbacher, 2021). The effects of changing the population composition are examined in Section 4.4.…”

Section: Calibration and Numerical Analysismentioning

confidence: 99%

Public pension policy and the equity–efficiency trade‐off^∗

Gustafsson

2023

Scandinavian J Economics

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“…The primary tool to combat this inequality is a progressive income tax, which also increases education subsidies and supports the public health system while improving access to health care. An ideal tax policy must balance the trade-off between the general equilibrium effect and the negative welfare effect of tax distortion on labor supply on the one hand, and the positive welfare benefit of redistribution on welfare on the other (Heer & Rohrbacher, 2021).…”

Section: Consumption and Income Tax Structure And Tax Reformmentioning

confidence: 99%

Tax Policy in Limiting the Consumption of Luxury Goods

Yossinomita¹

2022

R. Econ. and Finan.

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This literature review explores tax policy in reducing or limiting the consumption of luxury goods. This exploration has crucial theoretical and practical significance with the rapid development of the economy and technology, in which the income level of the people has increased rapidly. Excessive consumption of luxury goods will have a negative impact on the country's economic development. This is because inequality is widening, income is reduced, social equality is lost, and the demand for domestic goods will weaken. These issues will later cause widespread public concern. The policy to reduce or limit the consumption of luxury goods marked by an increase in consumption outflows is the adjustment of taxes on luxury goods. As one of the macroeconomic control policies taken by the government, the adjustment of tariffs, income taxes, and consumption taxes on luxury goods has proven to be effective in controlling the demand for luxury goods. Several international studies have obtained a fairly in-depth analysis of this issue from a tax policy perspective. This study attempts to explore the international research literature on tax policy in limiting the consumption of luxury goods.

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