We analyze the optimal design of income transfer programs with a special focus on participation taxes and the marginal tax rates in the phase-out region. The analytical framework incorporates labor supply responses along the intensive and extensive margin, where the latter is due to a minimum hours constraint. All results are expressed in reduced form, i.e. in terms of intensive and extensive l...

THIS DOCUMENT STUDIES the sensitivity of the optimal carbon tax formulation derived by Golosov, Hassler, Krusell, and Tsyvinski (2014) (“GHKT”). GHKT showed that, under certain assumptions, the optimal carbon tax–GDP ratio can be solved for in closed form, and does not depend on the paths of future output, consumption, and technological change. These assumptions include logarithmic preferences ...

This paper introduces a model of optimal health insurance. This model provides theoretical guidance of the relationship between household preferences, cost-sharing, and premiums. I apply this model to understand how the income tax subsidy distorts optimal cost-sharing in health insurance. Typically, insurance protects individuals from financial risk. Health insurance plans, however, are frequen...

Natural T cell receptors (TCRs) generally bind to their cognate pMHC molecules with weak affinity and fast kinetics, limiting their use as therapeutic agents. Using phage display, we have engineered a high affinity version of the A6 wild-type TCR (A6wt), specific for the human leukocyte antigen (HLA-A(∗)0201) complexed with human T cell lymphotropic virus type 111-19 peptide (A2-Tax). Mutations...

This paper explores a number of possible arguments for taking state and local tax payments into account in the federal income tax base. Traditional arguments regarding benefit spillovers and tax exporting are more consistent with targeted intervention at a less centralized level. Applications of commodity tax arguments to this setting suggest that there could be equity gains to taxing rather th...

We examine the welfare consequence of emissions tax with and without a Border Tax Adjustment for an imperfectly competitive industry, where intraindustry trade arises between countries. BTA allows a government to impose a pollution-content tari¤ on imports and refund an emission tax for export sales. We analyze the structure of an optimal emission tax with BTA when a government chooses its emis...

This paper examines the optimal schedule of marginal tax rates and the design of earned income tax credits. The analysis is based on a structural labour supply model which incorporates unobserved heterogeneity, fixed costs of work and the detailed non-convexities of the tax and transfer system. An analytical framework is developed that allows explicitly for an extensive margin in work choices a...

This paper analyzes the effects of government debt and income taxes on consumption and saving in a world of infinitely lived households having uncertain and heterogeneous incomes. The special structure of the model allows exact aggregation across households despite incomplete markets. The effects of government debt are shown to be substantial, roughly comparable to those resulting from finite h...

Local governments in the United States typically rely on several main sources of own-source revenues, including individual income taxes, general sales taxes, specific excise taxes, fees and charges, and local property taxes. Of these sources, the dominant is by far the property tax. According to the United States Census Bureau (http://www.census.gov/govs/estimate), local property taxes accounte...