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HOW SHOULD TAX PROGRESSIVITY RESPOND TO RISING INCOME INEQUALITY?

机译:税收进展应如何应对收入不平等的上升?

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摘要

We address the question in the title in a heterogeneous-agent incomplete-market model featuring exogenous idiosyncratic risk, endogenous skill investment, and flexible labor supply. The tax and transfer schedule is restricted to being log-linear in income, a good description of the US system. Rising inequality is modeled as a combination of skill-biased technical change and growth in residual wage dispersion. When facing shifts in the income distribution like those observed in the United States, a utilitarian planner chooses higher progressivity in response to larger residual inequality but lower progressivity in response to widening skill price dispersion reflecting technical change. Overall, optimal progressivity is approximately unchanged between 1980 and 2016. We document that the progressivity of the actual US tax and transfer system has similarly changed little since 1980, in line with the model prescription.
机译:我们在标题中的问题中以异类的不完整市场模型为特征,具有外源性特质风险,内源性技能投资和灵活的劳动力供应。 税收和转让时间表仅限于收入的日志线性,这是对美国系统的良好描述。 不平等现象的上升是作为技能偏见的技术变革和剩余工资分散体增长的结合。 当面对收入分配的转变时,就像在美国观察到的那样,功利主义计划者选择较高的进步性,以响应更大的残余不平等,而较低的进步性则响应着反映技术变革的技能价格分散的响应。 总体而言,在1980年至2016年之间,最佳进步性大约是没有变化的。我们记录,自1980年以来,实际上,美国实际税收和转移系统的渐进率也与模型处方一致。

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