This paper investigates the equilibrium implications of the presence of nonlinearly taxed, redundant securities, and of the resulting tax arbitrage opportunities. Heterogeneity in taxation leads to discrepancies in assets' pre-tax market prices of risk. We show that this mispricing is set so that agents e®ectively cooperate to minimize aggregate taxes, even though individually each agent may no...

This paper investigates the equilibrium implications of the presence of nonlinearly taxed, redundant securities, and of the resulting tax arbitrage opportunities. Heterogeneity in taxation leads to discrepancies in assets' pre-tax market prices of risk. We show that this mispricing is set so that agents e®ectively cooperate to minimize aggregate taxes, even though individually each agent may no...

The paper tries to relate inequality, occupational choice and long run wealth. Defining the unskilled as poor, skilled group as middle class and entrepreneurs as rich the paper focusesstarting from a huge middle class relative to the rich along with a higher fraction of borrowing entrepreneurs within the rich group, an economy converges with a very low wealth level. In other words, one needs to...

This study attempts to explain the observed asset allocation and location decisions for households making taxable and tax-deferred investment. I incorporate employer matching policies and other pension account characteristics into a life-cycle model of optimal intertemporal consumption and portfolio choice, which includes a taxable saving account and a tax-deferred retirement saving account. Th...

In response to the decline in tax revenue due Covid-19 pandemic, government has issued a regulation collect new tax, namely Carbon Tax through Law Number 7 of 2021 concerning Harmonization Regulations. Because this is being implemented for first time Indonesia and its calculation also not simple, it estimated that successful collection will take long time. Whereas need explore sources needed at...

Using large samples of estate tax returns, we construct new series on wealth concentration in Paris and France from 1807 to 1994. Inequality increased until 1914 because industrial and financial estates grew dramatically. Then, adverse shocks, rather than a Kuznets-type process, led to a massive decline in inequality. The very high wealth concentration prior to 1914 benefited retired individual...

This paper studies the consequences of accidental and intended bequests in stochastic life-cycle models with uninsured idiosyncratic risk. Four main findings emerge. (i) Accidental bequests are nearly as large as total bequests in U.S. data. As a result, life-cycle models leave little room for intended bequests. (ii) Accidental or altruistic bequests can account for key features of bequest and ...