File(s) not publicly available
Age-dependent taxes with endogenous human capital formation
journal contribution
posted on 2023-06-10, 05:03 authored by Carlos E da Costa, Marcelo Rodrigues dos SantosMarcelo Rodrigues dos SantosWe assess the gains attained by the introduction of age-dependent labor income taxes in an overlapping generations economy where individuals live a meaningful life cycle and endogenously accumulate human capital. The model is sufficiently rich to isolate the role of general equilibrium effects, credit market imperfections, and different forms of human capital accumulation. The large welfare gains we obtain cannot be attained without age dependence, nor can they be attained with age-dependent taxes if progressivity of labor income taxes and capital income tax rates are not suitably adjusted to profit from the complementarity of these instruments.
History
Publication status
- Published
Journal
International Economic ReviewISSN
0020-6598Publisher
WileyExternal DOI
Issue
2Volume
59Page range
785-823Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes