scholarly journals Social Welfare Effects of Progressive Income Taxation under Increasing Inequality

2020 ◽  
Vol 29 (5) ◽  
pp. 575-599
Author(s):  
Saša Ranđelović ◽  
Marko Vladisavljević
Keyword(s):  
Social Welfare ◽  
Welfare Effects ◽  
Income Taxation ◽  
Progressive Income Taxation

scholarly journals Optimal Policy with Heterogeneous Preferences

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Social Welfare ◽  
Public Goods ◽  
Optimal Policy ◽  
Income Tax ◽  
Social Welfare Function ◽  
Income Taxation ◽  
Heterogeneous Preferences ◽  
Commodity Taxation ◽  
Policy Rules ◽  
The Social

Abstract Optimal policy rules—including those regarding income taxation, commodity taxation, public goods, and externalities—are typically derived in models with homogeneous preferences. This article reconsiders many central results for the case in which preferences for commodities, public goods, and externalities are heterogeneous. When preference differences are observable, standard second-best results in basic settings are unaffected, except those for the optimal income tax. Optimal levels of income taxation may be higher, the same, or lower on types who derive more utility from various goods, depending on the nature of preference differences and the concavity of the social welfare function. When preference differences are unobservable, all policy rules may change. The determinants of even the direction of optimal rule adjustments are many and subtle.

scholarly journals Cards on the Table: Efficiency and Welfare Effects of the No-Surcharge Rule

2018 ◽  
Vol 17 (1) ◽  
pp. 25-50 ◽  
Author(s):  
David Henriques
Keyword(s):  
Social Welfare ◽  
Optimal Policy ◽  
Network Externalities ◽  
Welfare Effects ◽  
Retail Price ◽  
Electronic Payment ◽  
Price Efficiency ◽  
Payment Card ◽  
The Social ◽  
Card Payment

Abstract In Electronic Payment Networks (EPNs), the No-Surcharge Rule (NSR) requires that merchants charge at most the same amount for a payment card transaction as for cash. In this paper, I use a three-party model (consumers, local monopolistic merchants, and a proprietary EPN) with endogenous transaction volumes, heterogeneous card use benefits for merchants and network externalities of card-accepting merchants on cardholders to assess the efficiency and welfare effects of the NSR. I show that the NSR: (i) promotes retail price efficiency for cardholders, and (ii) inefficiently reduces card acceptance among merchants. The NSR can enhance social welfare and improve payment efficiency by shifting output from cash payers to cardholders. However, if network externalities are sufficiently strong, the reduction of card payment acceptance affects cardholders negatively and, with the exception of the EPN, all agents will be worse off under the NSR. This paper also suggests that the NSR may be an instrument to decrease cash usage, but the social optimal policy on the NSR may depend on the competitive conditions in each market.

scholarly journals Adapting Income Taxation to the Labor Market Changes

2021 ◽  
Vol 31 (2) ◽  
pp. 167-178
Author(s):  
Anna Kireenko ◽  
Svetlana Sodnomova
Keyword(s):  
Labor Market ◽  
Income Taxation ◽  
Work Skills ◽  
Digital Platforms ◽  
Gig Economy ◽  
Tax Deductions ◽  
Data Statistics ◽  
Market Trends ◽  
Progressive Income Taxation ◽  
Market Changes

The article is concerned with the analysis of the labor market changes, requiring the personal income tax reform. Methods of comparative and statistical analysis are applied. Rating and analytical agencies data, statistics from the OECD, Eurofond and Eurostat used as the empirical base of the study. Three labor market trends requiring appropriate changes in taxation were identified. The first trend is the change in the demand for work skills, which requires a more flexible approach to educational tax deductions and tax incentives for training in high-demand digital professions. The second trend is digital platforms and the gig economy that enhance income differentiation, which inevitably raises the question of progressive income taxation. The third trend is an increase in non-standard employment. The article analyzes such forms of non-standard employment as work on the basis of vouchers, platform work, joint employment, casual labour which are associated with the ambiguous status of employment and require changes in tax policy to regulate them.

Naked Open-Market Manipulation and Its Effects

2018 ◽  
pp. 199-231 ◽  
Author(s):  
Merritt B. Fox ◽  
Lawrence R. Glosten ◽  
Gabriel V. Rauterberg
Keyword(s):  
Social Welfare ◽  
Theory Of The Firm ◽  
Analytical Framework ◽  
Welfare Effects ◽  
Market Manipulation ◽  
Open Market ◽  
Central Question ◽  
Federal Law ◽  
Trading Activity ◽  
The Social

More than 80 years after US federal law first addressed stock market manipulation, there is still dispute about manipulation law’s foundational principles; this chapter aims to provide clarity by offering an analytical framework for understanding a specific manipulation. There has been a sharp split among the federal circuits concerning manipulation law’s central question: Can trading activity alone ever be considered illegal manipulation? Economists and legal scholars do not agree on whether manipulation is possible in principle, let alone on how to address it properly in practice. The framework offered by this chapter aims to help clarify federal law and may guide regulators in successfully prosecuting financial law’s most intractable wrong. We draw on the tools of microstructure economics and the theory of the firm to provide an analysis of a particular form of manipulation, identify who is harmed by it, and evaluate the social welfare effects.

scholarly journals Welfare Analysis in an Extended Harris-Todaro Model: An Application of the Atkinson Theorem

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Hautahi Kingi
Keyword(s):  
Income Distribution ◽  
Social Welfare ◽  
Informal Sector ◽  
Job Search ◽  
Welfare Analysis ◽  
Welfare Effects ◽  
Direct Application ◽  
Modern Sector ◽  
Schur Concave ◽  
Urban Informal Sector

AbstractI analyze the welfare effects of a policy of modern sector enlargement (MSENL), and a policy of increasing the efficiency of on-the-job search from the urban informal sector (IEOS) in a generalized Harris-Todaro model. I show that MSENL causes a Lorenz worsening of the income distribution and IEOS causes a Lorenz improvement. In a rare direct application of the Atkinson theorem, I conclude that MSENL decreases social welfare and IEOS increases social welfare for all anonymous, increasing and Schur-concave social welfare functions.

WELFARE EFFECTS OF PATENT PROTECTION IN A GROWTH MODEL WITH R&D AND CAPITAL ACCUMULATION

2019 ◽  
pp. 1-24
Author(s):  
Yibai Yang
Keyword(s):  
Social Welfare ◽  
Growth Model ◽  
Capital Accumulation ◽  
Patent Protection ◽  
Welfare Analysis ◽  
Welfare Effects ◽  
Us Economy ◽  
The Us ◽  
Welfare Implications ◽  
Relative Productivity

This study explores the welfare effects of patent protection in a Romer-type expanding variety model in which R&D and capital accumulation are both engines of growth. It shows that the comparison between the productivity of R&D and that of capital plays an important role in the welfare analysis. When the relative productivity of R&D compared to capital is high (low), social welfare takes an inverted-U shape for (is decreasing in) the strength of patent protection, and the welfare-maximizing degree of patent protection is no greater than (identical to) the growth-maximizing degree. Moreover, the model is calibrated to the US economy and the numerical results support these welfare implications.

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