Tag Archives: Taxes

Weekend reading

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Optimal Tax Progressivity: An Analytical Framework

From Jonathan Heathcote, Kjetil Storesletten, Giovanni Violante: What shapes the optimal degree of progressivity of the tax and transfer system? On the one hand, a progressive tax system can counteract inequality in initial conditions and substitute for imperfect private insurance … Continue reading

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America risks becoming a Downton Abbey Economy

From Larry Summers: Inequality has emerged as a major issue in the US and beyond. A generation ago it could reasonably have been asserted that the overall growth rate of the economy was the main influence on the growth in … Continue reading

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Comparative Advantage and Optimal Trade Policy

From Arnaud Costinot, Dave Donaldson, Jonathan Vogel, Iván Werning: The theory of comparative advantage is at the core of neoclassical trade theory. Yet we know little about its implications for how nations should conduct their trade policy. For example, should import sectors with weaker … Continue reading

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Tax Benefits to Housing and Inefficiencies in Location and Consumption

From David Albouy and Andrew Hanson: Tax benefits to owner-occupied housing provide incentives for housing consumption, offsetting weaker disincentives of the property tax. These benefits also help counter the penalty federal taxes impose on households who work in productive high-wage … Continue reading

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Competing for Global Capital or Local Voters? The Politics of Business Location Incentives

From Nathan Jensen, Edmund Malesky, Matthew Walsh: The competition for global capital has led to wars between countries, states, and cities, as to who can offer the most attractive fiscal incentives to firms. In this study, we examine the domestic politics of … 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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