Tag Archives: Incidence

Business in the United States: Who Owns it and How Much Tax Do They Pay?

“Pass-through” businesses like partnerships and S-corporations now generate over half of U.S. business income and account for over half of the post-1980 rise in the top- 1% income share. We use administrative tax data from 2011 to identify pass-through business … Continue reading

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Do Banks Pass Through Credit Expansions? The Marginal Profitability of Consumer Lending During the Great Recession

From Sumit Agarwal, Souphala Chomsisengphet, Neale Mahoney, and Johannes Stroebel: The effect of bank-mediated stimulus on household borrowing depends on whether banks pass through credit expansions to households with a high marginal propensity to borrow (MPB). We use panel data on … Continue reading

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Is the EITC as Good as an NIT? Conditional Cash Transfers and Tax Incidence

From Jesse Rothstein: The EITC is intended to encourage work. But EITC-induced increases in labor supply may drive wages down. I simulate the economic incidence of the EITC. In each scenario that I consider, a large portion of low-income single … Continue reading

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Who Benefits when the Government Pays More? Pass-Through in the Medicare Advantage Program

From Mark Duggan, Amanda Starc, Boris Vabson: Governments contract with private firms to provide a wide range of services. While a large body of previous work has estimated the effects of that contracting, surprisingly little has investigated how those effects vary … Continue reading

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Who benefits from state corporate tax cuts?

Here is a new VOXEU summary of my job market paper for their job market paper series: State and local governments have been increasing business location incentives and cutting corporate taxes to attract businesses to their jurisdictions. For instance, Jay Inslee, the … Continue reading

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Who Pays for Public Employee Health Costs?

From Jeff Clemens and David Cutler: We analyze the incidence of public-employee health benefits. Because these benefits are negotiated through the political process, relevant labor market institutions deviate significantly from the competitive, private-sector benchmark. Empirically, we find that roughly 15 percent … Continue reading

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Technological Change through History: the View from 30,000 feet

Brad Delong has a an outstanding post on technological change. He categorizes how people add value and shows how technological change alters these categories. It’s interesting to think about his post and these issues in terms of a simple (classical) model and … Continue reading

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Who Benefits from Technological Change?

Given recent concern about technological change and how it is wrecking the middle class, I thought I’d share a simple illustration of what classical economic models* imply about the relationship between productivity growth and the returns to workers and capital owners. … Continue reading

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Six Reasons to Study Capital Taxation

Here are four reasons from Emmanuel Saez: Capital income is about 25% of national income (labor income is 75%) but distribution of capital income is much more unequal than labor income. Capital income inequality is due to differences in savings behavior but also … Continue reading

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Apple, Avoidance, and Corporate Tax Incidence

In all the discussion over Apple today, remember that if labor bears the corporate tax, then companies avoiding it may actually end up helping workers. In other words, if workers end up picking up the tab (because capital is mobile/companies … Continue reading

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