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POSITIONAL CONCERNS IN AN OLG MODEL OPTIMAL LABOR AND CAPITAL INCOME TAXATION

Aronsson, T and Johansson-Stenman, O (2010) In International Economic Review 51(4). p.1071-1095
Abstract
This article concerns optimal income taxation under asymmetric information in a two type OLG model when indi viduals relative consumption matters Positional concerns affect the policy choices via two channels (i) the average degree of positionality and (ii) positionality differences between the low ability type and the mimicker Under plausible empirical estimates the marginal labor income tax rates become substantially larger and the absolute value of the marginal capital income tax rate of the low ability type becomes substantially smaller than in the conventional model In addition to measures of reference consumption based on average consumption we also address within generation and upward comparisons
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author
publishing date
type
Contribution to journal
publication status
published
subject
in
International Economic Review
volume
51
issue
4
pages
1071 - 1095
publisher
Wiley-Blackwell
external identifiers
  • scopus:78649423986
ISSN
0020-6598
DOI
10.1111/j.1468-2354.2010.00611.x
project
BECC
language
English
LU publication?
no
id
5792966c-373a-4335-8fe6-5a20c1b342bc (old id 4448748)
date added to LUP
2014-05-23 12:11:29
date last changed
2018-05-29 10:03:27
@article{5792966c-373a-4335-8fe6-5a20c1b342bc,
  abstract     = {This article concerns optimal income taxation under asymmetric information in a two type OLG model when indi viduals relative consumption matters Positional concerns affect the policy choices via two channels (i) the average degree of positionality and (ii) positionality differences between the low ability type and the mimicker Under plausible empirical estimates the marginal labor income tax rates become substantially larger and the absolute value of the marginal capital income tax rate of the low ability type becomes substantially smaller than in the conventional model In addition to measures of reference consumption based on average consumption we also address within generation and upward comparisons},
  author       = {Aronsson, T and Johansson-Stenman, O},
  issn         = {0020-6598},
  language     = {eng},
  number       = {4},
  pages        = {1071--1095},
  publisher    = {Wiley-Blackwell},
  series       = {International Economic Review},
  title        = {POSITIONAL CONCERNS IN AN OLG MODEL OPTIMAL LABOR AND CAPITAL INCOME TAXATION},
  url          = {http://dx.doi.org/10.1111/j.1468-2354.2010.00611.x},
  volume       = {51},
  year         = {2010},
}