Intergenerational disagreements in labor supply and optimal bequest taxation

Optimal Taxation, Marriage, Home Production, and Family Labor Supply

This paper develops an empirical approach to optimal income taxation design within an equilibrium collective marriage market model. Taxes distort labour supply and time allocation decisions, as well as marriage market outcomes, and the within household decision process. Using data from the American Community Survey and American Time Use Survey we structurally estimate our model and explore empi...

Taxation and Labor Supply Decisions:

Optimal Labor Income Taxation∗

This handbook chapter reviews recent developments in the theory of optimal labor income taxation. We emphasize connections between theory and empirical work that were initially lacking from optimal income tax theory. First, we provide historical and international background on labor income taxation and means-tested transfers. Second, we present the simple model of optimal linear taxation. Third...

Optimal Redistributive Taxation with both Labor Supply and Labor Demand Responses

This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework where (voluntary) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation (labor supply) respon...

Optimal Progressive Labor Income Taxation and Education Subsidies When Education Decisions and Intergenerational Transfers are Endogenous∗

We thank Fatih Guvenen, Mike Golosov, Felicia Ionescu and seminar participants at Bocconi, LSE, Royal Holloway and University of Zürich for many useful comments. Krueger gratefully acknowledges …nancial support from the NSF under grant SES-0820494. Ludwig gratefully acknowledges …nancial support from the Land North Rhine Westphalia.