Optimal taxation with risky human capital
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F19%3A00517843" target="_blank" >RIV/67985998:_____/19:00517843 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/19:00509783
Result on the web
<a href="http://dx.doi.org/10.1257/mac.20160365" target="_blank" >http://dx.doi.org/10.1257/mac.20160365</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1257/mac.20160365" target="_blank" >10.1257/mac.20160365</a>
Alternative languages
Result language
angličtina
Original language name
Optimal taxation with risky human capital
Original language description
We study optimal tax policies in a life-cycle economy with permanent ability differences and risky human capital investments that have both an unobservable component, learning effort, and an observable component, schooling. The optimal policies balance redistribution across agents, insurance against human capital shocks, and incentives to learn and work. In the optimum, (i) high-ability agents face risky consumption while low-ability agents are insured, (ii) the optimal schooling subsidy is substantial but less than 100 percent, (iii) if utility is separable in labor and learning effort, the inverse labor wedge follows a random walk, and (iv) if the utility is not separable then the “no distortion at the top” result does not apply. The welfare gains from switching to the optimal tax system are about 1 percent in annual consumption equivalents.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50201 - Economic Theory
Result continuities
Project
<a href="/en/project/GA13-29370S" target="_blank" >GA13-29370S: Dynamic Optimal Taxation over a Life-Cycle: The Role of Human Capital</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
American Economic Journal: Macroeconomics
ISSN
1945-7707
e-ISSN
1945-7715
Volume of the periodical
11
Issue of the periodical within the volume
4
Country of publishing house
US - UNITED STATES
Number of pages
39
Pages from-to
271-309
UT code for WoS article
000488612300008
EID of the result in the Scopus database
2-s2.0-85073104252