Optimal linear income taxes and education subsidies under skill-biased technical change
نویسندگان
چکیده
Abstract This paper studies how linear tax and education policy should optimally respond to skill-biased technical change (SBTC). SBTC affects optimal taxes subsidies by changing (1) direct distributional benefits of each instrument, (2) indirect, general-equilibrium effects on wages, (3) distortions. Analytically, the effect these three components is shown be ambiguous. In simulations for US economy, makes system more progressive lowers subsidies. because both income subsidies; their become important, which than offsets larger increased
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ژورنال
عنوان ژورنال: International Tax and Public Finance
سال: 2022
ISSN: ['0927-5940', '1573-6970']
DOI: https://doi.org/10.1007/s10797-022-09756-8