Risk-Taking and Optimal Taxation with Nontradable Human Capital PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Risk-Taking and Optimal Taxation with Nontradable Human Capital PDF full book. Access full book title Risk-Taking and Optimal Taxation with Nontradable Human Capital by Zuliu Hu. Download full books in PDF and EPUB format.
Author: Zuliu Hu
Publisher: International Monetary Fund
ISBN: 1451947429
Category : Business & Economics
Languages : en
Pages : 22
Get Book Here
Book Description
What are the effects of taxation on individual/entrepreneurs’ risk-taking behavior? This paper re-examines this old question in a continuous time life-cycle model. We demonstrate that the stream of uncertain income from human capital has systematic effects on demand for the risky physical capital asset. If labor supply is inelastic and real wages are known with certainty, then a labor income tax will reduce holdings of the risky physical asset. However, if there are random fluctuations in labor income, then the effect depends on the nature of interaction between wage risk and investment income risk. A labor income tax may actually raise demand for the risky capital asset if human capital risk and physical capital risk are positively correlated. The idiosyncratic risk and nontradability of human capital also have implications for optimal taxation. When the insurance and disincentive effects are jointly taken into account, a Pareto efficient tax structure implies a strictly positive tax rate.
Author: Zuliu Hu
Publisher: International Monetary Fund
ISBN: 1451947429
Category : Business & Economics
Languages : en
Pages : 22
Get Book Here
Book Description
What are the effects of taxation on individual/entrepreneurs’ risk-taking behavior? This paper re-examines this old question in a continuous time life-cycle model. We demonstrate that the stream of uncertain income from human capital has systematic effects on demand for the risky physical capital asset. If labor supply is inelastic and real wages are known with certainty, then a labor income tax will reduce holdings of the risky physical asset. However, if there are random fluctuations in labor income, then the effect depends on the nature of interaction between wage risk and investment income risk. A labor income tax may actually raise demand for the risky capital asset if human capital risk and physical capital risk are positively correlated. The idiosyncratic risk and nontradability of human capital also have implications for optimal taxation. When the insurance and disincentive effects are jointly taken into account, a Pareto efficient tax structure implies a strictly positive tax rate.
Author: Jonathan Eaton
Publisher:
ISBN:
Category : Human capital
Languages : en
Pages : 56
Get Book Here
Book Description
Author:
Publisher:
ISBN: 9788073443580
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Piero Gottardi
Publisher:
ISBN:
Category : Debts, Public
Languages : en
Pages : 35
Get Book Here
Book Description
We consider an economy where individuals face uninsurable risks to their human capital accumulation, and study the problem of determining the optimal level of linear taxes on capital and labor income together with the optimal path of the debt level. We show both analytically and numerically that in the presence of such risks it is bene cial to tax both labor and capital income and to have positive government debt.
Author: Piero Gottardi
Publisher:
ISBN:
Category : Debts, Public
Languages : en
Pages : 0
Get Book Here
Book Description
We consider an economy where individuals face uninsurable risks to their human capital accumulation, and study the problem of determining the optimal level of linear taxes on capital and labor income together with the optimal path of the debt level. We show both analytically and numerically that in the presence of such risks it is bene cial to tax both labor and capital income and to have positive government debt.
Author: Claudia Hermeling
Publisher:
ISBN: 9783866241664
Category :
Languages : en
Pages : 148
Get Book Here
Book Description
Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
ISBN: 145197325X
Category : Business & Economics
Languages : en
Pages : 236
Get Book Here
Book Description
This paper assesses alternative auction techniques for pricing and allocating various financial instruments, such as government securities, central bank refinance credit, and foreign exchange. Before recommending appropriate formats for auctioning these items, the paper discusses basic auction formats, assessing the advantages and disadvantages of each, based on the existing, mostly theoretical, literature. It is noted that auction techniques can be usefully employed for a broad range of items and that their application is of particular relevance to the impetus in many parts of the world toward establishing market-oriented economies.
Author:
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 490
Get Book Here
Book Description
Author: Andreas Fagereng
Publisher: International Monetary Fund
ISBN: 1484370066
Category : Business & Economics
Languages : en
Pages : 69
Get Book Here
Book Description
We provide a systematic analysis of the properties of individual returns to wealth using twelve years of population data from Norway’s administrative tax records. We document a number of novel results. First, during our sample period individuals earn markedly different average returns on their financial assets (a standard deviation of 14%) and on their net worth (a standard deviation of 8%). Second, heterogeneity in returns does not arise merely from differences in the allocation of wealth between safe and risky assets: returns are heterogeneous even within asset classes. Third, returns are positively correlated with wealth: moving from the 10th to the 90th percentile of the financial wealth distribution increases the return by 3 percentage points - and by 17 percentage points when the same exercise is performed for the return to net worth. Fourth, wealth returns exhibit substantial persistence over time. We argue that while this persistence partly reflects stable differences in risk exposure and assets scale, it also reflects persistent heterogeneity in sophistication and financial information, as well as entrepreneurial talent. Finally, wealth returns are (mildly) correlated across generations. We discuss the implications of these findings for several strands of the wealth inequality debate.
Author:
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 1164
Get Book Here
Book Description
