English, Article, Journal or magazine article edition: Supply Side Interventions and Redistribution Teresa Garcia-Milà; Albert Marcet; Eva Ventura

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Bookmark: http://trove.nla.gov.au/version/154936
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Supply Side Interventions and Redistribution
Author
  • Teresa Garcia-Milà
  • Albert Marcet
  • Eva Ventura
Physical Description
  • preprint
Notes
  • In this paper we study the welfare impact of alternative tax schemes on labor and capital. We evaluate the e_ect of lowering capital income taxes on the distribution of wealth in a model with heterogeneous agents, restricting our attention to policies with constant tax rates. We calibrate and simulate the economy; we find that lowering capital taxes has two effects: i) it increases effciency in terms of aggregate production, and ii) it redistributes wealth in favor of those agents with a low wage/​wealth ratio. We find that the redistributive effect dominates, and that agents with a low wage wealth ratio would experience a large loss in utility if capital income taxes were eliminated.
  • Taxation, Heterogeneity, Redistribution, Simulation
  • RePEc:upf:upfgen:115
Language
  • English
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