Age-dependent taxes with endogenous human capital formation

da Costa, Carlos E and Rodrigues Dos Santos, Marcelo (2018) Age-dependent taxes with endogenous human capital formation. International Economic Review, 59 (2). pp. 785-823. ISSN 0020-6598

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We 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.

Item Type: Article
Keywords: Clinical Research, Basic Behavioral and Social Science, Behavioral and Social Science
Schools and Departments: University of Sussex Business School > Economics
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 10 Oct 2022 12:17
Last Modified: 13 Dec 2022 10:23
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