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  1. Tax revolts and sovereign defaults
    Erschienen: [2024]
    Verlag:  Federal Reserve Bank of Chicago, [Chicago, Illinois]

    Protests and fiscal crises often coincide, with complex causal dynamics at play. We examine the interaction between tax revolts and sovereign risk using a quantitative structural model calibrated to Argentina during the Macri administration... mehr

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    Protests and fiscal crises often coincide, with complex causal dynamics at play. We examine the interaction between tax revolts and sovereign risk using a quantitative structural model calibrated to Argentina during the Macri administration (2015-2019). In the model, the government can be controlled by political parties with different preferences for redistribution. Households may opt to revolt in response to the fiscal policies of the ruler. While revolts entail economic costs, they also increase the likelihood of political turnover. Our model mirrors the data by generating political crises concurrent with fiscal turmoil. We find that left-leaning parties are more prone to default, while right-leaning parties sustain higher debt levels. Revolts impact default risk through two channels. First, political crises can increase sovereign risk by facilitating transitions from right-wing to left-wing administrations that culminate in default. Second, the threat of frequent revolts during default periods can deter the government and increase commitment. In our calibration, the latter channel dominates the former with revolts operating as an endogenous default cost. Relative to a model without revolts, our framework can sustain higher levels of debt and reduce the frequency of defaults.

     

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    Schriftenreihe: [Working paper] / Federal Reserve Bank of Chicago ; WP 2024, 07 (February 2024)
    Schlagworte: Civil unrest; financial crises; sovereign default; redistribution
    Umfang: 1 Online-Ressource (circa 42 Seiten), Illustrationen
  2. Ruled by robots
    preference for algorithmic decision makers and perceptions of their choices
    Erschienen: [2023]
    Verlag:  Collaborative Research Center Transregio 190, [München]

    As technology-assisted decision-making is becoming more widespread, it is important to understand how the algorithmic nature of the decisionmaker affects how decisions are perceived by the affected people. We use a laboratory experiment to study the... mehr

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    As technology-assisted decision-making is becoming more widespread, it is important to understand how the algorithmic nature of the decisionmaker affects how decisions are perceived by the affected people. We use a laboratory experiment to study the preference for human or algorithmic decision makers in re-distributive decisions. In particular, we consider whether algorithmic decision maker will be preferred because of its unbiasedness. Contrary to previous findings, the majority of participants (over 60%) prefer the algorithm as a decision maker over a human—but this is not driven by concerns over biased decisions. Yet, despite this preference, the decisions made by humans are regarded more favorably. Participants judge the decisions to be equally fair, but are nonetheless less satisfied with the AI decisions. Subjective ratings of the decisions are mainly driven by own material interests and fairness ideals. For the latter, players display remarkable flexibility: they tolerate any explainable deviation between the actual decision and their ideals, but react very strongly and negatively to redistribution decisions that do not fit any fairness ideals. Our results suggest that even in the realm of moral decisions algorithmic decision-makers might be preferred, but actual performance of the algorithm plays an important role in how the decisions are rated.

     

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    hdl: 10419/282131
    Schriftenreihe: Discussion paper / Rationality & Competition, CRC TRR 190 ; no. 439 (October 24, 2023)
    Schlagworte: delegation; algorithm aversion; redistribution; fairness
    Umfang: 1 Online-Ressource (circa 41 Seiten), Illustrationen
  3. Factor shares, redistribution and growth in a captured democracy
    Erschienen: January 2024
    Verlag:  IZA - Institute of Labor Economics, Bonn, Germany

    A model of endogenous growth is presented, based on productive public expenditures, and featuring some degree of income inequality, and polarization in policy preferences. The main innovation lays in the political process determining capital taxation... mehr

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    A model of endogenous growth is presented, based on productive public expenditures, and featuring some degree of income inequality, and polarization in policy preferences. The main innovation lays in the political process determining capital taxation that relies, both on voting and on "influence activities," exploited by the capitalist elite in order to capture some political power at the expenses of the median voter. In particular, investments in lobbying activities allow the rich to obtain lower capital taxes, to the benefit of both themselves and economic growth. The model's equilibrium dynamics features variable taxes and lobbying. In addition, it is established the existence of a transitional dynamics featuring convergence to a balanced growth path, characterized by constant taxes and lobbying (and a constant growth rate of consumption and capital). Capital accumulation leads, along the transitional path, to more and more lobbying, that asymptotically cause taxation to reach precisely the tax rate preferred by the capitalists (induced by a very large political pressure on the government). Specifically, the (unique) balanced growth equilibrium features the maximization of the net interest rate, as well as the economy's growth rate and capitalists' welfare. On the transitional path, lobbying reduces the workers' political weight (and their consumption), and therefore makes fiscal policy relatively more and more capitalists friendly. Policy polarization (loosely speaking reflecting inequality) has somewhat interesting effects along the transitional path towards balanced growth. Hereby, actual taxes become more capitalists-friendly relatively to the Meltzer and Richard's (1981) canonical median voter tax benchmark, mutatis mutandis. In the end, full convergence is established, from a pure democracy ruled through the de jure power only, to a political economic realm totally de facto dominated by the few capitalists, i.e. to an "oligarchic technocracy," possibly ruled by the "top 1%" of the population.

     

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    Schriftenreihe: Discussion paper series / IZA ; no. 16723
    Schlagworte: political economy; government; inequality; economic growth; redistribution; lobbying
    Umfang: 1 Online-Ressource (circa 50 Seiten), Illustrationen
  4. A magyar adórendszer újraelosztási hatásai
    Erschienen: 2022
    Verlag:  Közgazdaság-tudományi Intézet, Közgazdaság- és Regionális Tudományi Kutatóközpont, Budapest

    The study examines the income redistribution effects of the Hungarian flat-tax and the introduction of the novel family allowance scheme on the basis of administrative data for 2007, 2011 and 2020, which yields more accurate estimates than previous... mehr

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    The study examines the income redistribution effects of the Hungarian flat-tax and the introduction of the novel family allowance scheme on the basis of administrative data for 2007, 2011 and 2020, which yields more accurate estimates than previous studies based on aggregated or survey data. Between 2011 and 2013, progressive taxation was abolished, and a flat income tax was introduced, along with a substantial widening of pre-existing family tax credits. We find that the tax reform has favoured high-income earners and taxpayers with children, while the main losers are low-income and/or childless workers. While the family tax credit system is progressive to some extent, this effect is in practice negligeable, therefore the income tax system can still be considered flat. The family tax credit scheme favours wealthy families with many children over low-income families with fewer or no children. The biggest winners of the scheme are taxpayers in the top income decile with three or more children: these 22,000 taxpayers (that is, 2 percent of all recipients) receive 10 percent of the total amount of the family tax credit, and almost a third of the credit allocated to families with three or more children.

     

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    Sprache: Ungarisch
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    hdl: 10419/282208
    Schriftenreihe: KRTK-KTI műhelytanulmányok ; KRTK-KTI WP - 2022, 15 (2022 augusztus)
    Schlagworte: flat tax reform; income tax; redistribution; family tax credit
    Umfang: 1 Online-Ressource (circa 34 Seiten), Illustrationen
  5. Redystrybucja dochodów w świecie nierówności
    Erschienen: 2023
    Verlag:  Wydawnictwo Uniwersytetu Łódzkiego, Łódź

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    Sprache: Polnisch
    Medientyp: Ebook
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    ISBN: 9788383312545
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    Schriftenreihe: Ekonomia / Wydawnictwo Uniwersytetu Łódzkiego
    Schlagworte: income inequality; redistribution; taxes; public spending
    Umfang: 1 Online-Ressource (circa 158 Seiten), Illustrationen
  6. Le mécanisme troc carbone avion (TCA)
    un mécanisme juste et efficace pour réduire les émissions de carbone du transport aérien
    Erschienen: [2024]
    Verlag:  [Aix-Marseille School of Economics], [Aix-en-Provence

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    Sprache: Französisch
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    Schriftenreihe: Documents de travail / AMSE, Aix-Marseille School of Economics ; WP 2024, nr 09
    Schlagworte: Airplane; Carbon; Emissions; permits; redistribution
    Umfang: 1 Online-Ressource (circa 22 Seiten)
  7. Imperfect financial markets and the cyclicality of social spending
    Erschienen: January 2024
    Verlag:  Cardiff Business School, Cardiff University, Cardiff, United Kingdom

    This paper explores the link between default risk and fiscal procyclicality. We show that countries with higher sovereign risk have a more procyclical fiscal expenditure policy, which is driven mostly by transfers. We build a small open economy model... mehr

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    This paper explores the link between default risk and fiscal procyclicality. We show that countries with higher sovereign risk have a more procyclical fiscal expenditure policy, which is driven mostly by transfers. We build a small open economy model with income inequality, social transfers, and default risk to rationalize this fact. Without default risk transfers are countercyclical, inequality is procyclical, and external debt is used to smooth distortionary taxation. With default risk, transfers account for most of fiscal adjustment because taxation becomes costly for the government. Transfers become procyclical and inequality worsens during times when risk premia are high. We confirm the predictions of the model in the data: in recessions in economies with default risk, transfers take the bigger burden relative to government consumption, whereas the opposite is true in economies with low default risk.

     

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    Schriftenreihe: Cardiff economics working papers ; no. E2024, 3
    Schlagworte: fiscal policy; default risk; income inequality; redistribution; emerging markets
    Umfang: 1 Online-Ressource (circa 56 Seiten), Illustrationen
  8. Redistribution, horizontal inequity, and reranking
    direct taxation in the UK, 1977-2020
    Erschienen: December 2023
    Verlag:  International Inequalities Institute, The London School of Economics and Political Science, London

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    Schriftenreihe: Working paper / LSE International Inequalities Institute ; 125
    Schlagworte: Redistributive effect; redistribution; horizontal inequity; reranking; Urban-Lambert decomposition; income tax
    Umfang: 1 Online-Ressource (circa 31 Seiten), Illustrationen
  9. La revisione delle misure di contrasto alla povertà in Italia
    Erschienen: [2023]
    Verlag:  Banca d'Italia, [Rom]

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    Sprache: Italienisch
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    Schriftenreihe: Questioni di economia e finanza / Banca d'Italia ; number 820 (Dicembre 2023)
    Schlagworte: basic income; poverty; redistribution; microsimulation; occupation
    Umfang: 1 Online-Ressource (circa 19 Seiten), Illustrationen
  10. EU money and mayors
    does Cohesion policy affect local electoral outcomes?
    Erschienen: [2024]
    Verlag:  Department of Economics, Ca’ Foscari University of Venice, Venice Italy

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    Schriftenreihe: Working paper / Ca' Foscari University of Venice, Department of Economics ; 2024, no. 02
    Schlagworte: EU Cohesion Policy; incumbent re-election; political preferences; redistribution; local votingbehaviour
    Umfang: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  11. Self-serving redistributive preferences among natives and immigrants in the UK
    Erschienen: February 2024
    Verlag:  EcoAustria - Institute for Economic Research, Wien, Austria

    In an online experiment, we examine how ingroup bias and fairness concerns shape the redistributive preferences of UK resident natives and immigrants. Natives and immigrants were paired in a series of distributive situations. They chose how to divide... mehr

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    In an online experiment, we examine how ingroup bias and fairness concerns shape the redistributive preferences of UK resident natives and immigrants. Natives and immigrants were paired in a series of distributive situations. They chose how to divide a pie created from either party's previous contributions and stated what they believed to be their fair share from the vantage point of UK residents acting as unbiased spectators. In a complementary survey, we obtained these spectator divisions. We found that natives' and immigrants' distributive choices were absent ingroup bias. Their choices were, however, selfishly biased, as they invoked the fact that the pie was created solely from their own contributions. This behavior was eliminated when it disproportionately harmed the partner. Their fairness beliefs showed evidence of egocentric norm adoption: they favored equity as contributors and equality as noncontributors. They also believed that spectators would negatively discriminate against immigrants in favor of natives, but this perception was unfounded in light of spectators' divisions. We discuss the implications of our results for immigration research and integration policies. In einem Online-Experiment untersuchen wir, wie Voreingenommenheit und Gerechtigkeitsbedenken, die Umverteilungspräferenzen von in Großbritannien ansässigen Einheimischen und Einwanderern beeinflussen. Einheimische und Einwanderer wurden in einer Reihe von Verteilungssituationen miteinander gepaart. Sie entschieden, wie ein Kuchen, der aus den vorherigen Beiträgen beider Parteien entstanden war, aufgeteilt werden sollte und gaben an, was sie aus der Sicht der britischen Einwohner, die als unvoreingenommene Zuschauer agierten, für ihren gerechten Anteil hielten. Die Zuschaueraufteilung erhielten wir durch eine ergänzenden Umfrage. Wir stellten fest, dass die Verteilungsentscheidungen von Einheimischen und Einwanderern keine Eigengruppen-Voreingenommenheit zeigten. Ihre Entscheidungen waren jedoch egoistisch voreingenommen, da sie darauf hinwiesen, dass der Kuchen ausschließlich aus ihren eigenen Beiträgen entstanden war. Dieses Verhalten verschwand, wenn es dem Partner unverhältnismäßig schadete. Ihre Fairness-Überzeugungen zeigten Hinweise auf egozentrische Normübernahme: Sie bevorzugten Gleichheit als Beitragszahler und Gleichberechtigung als Nicht-Beitragszahler. Sie glaubten außerdem, dass Zuschauer negativ gegen Einwanderer und zugunsten von Einheimischen diskriminieren würden, aber diese Wahrnehmung war im Hinblick auf die Aufteilungen der Zuschauer unbegründet. Die Auswirkungen unserer Ergebnisse wurden in Kontext mit der Migrationsforschung und Integrationspolitik gesetzt.

     

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    Schriftenreihe: Research paper / EcoAustria ; no. 28
    Schlagworte: redistribution; equity; equality; United Kingdom; contributions; ingroup bias; self-serving behavior; egocentric norms; fairness; natives; immigrants
    Umfang: 1 Online-Ressource (circa 111 Seiten), Illustrationen
  12. The impact of taxes and wasteful government spending on giving
    Erschienen: April 27, 2016
    Verlag:  [Chapman University, Economic Science Institute], [Orange, CA]

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    Schriftenreihe: [Working papers / Chapman University, Economic Science Institute ; 16-07]
    Schlagworte: giving; charity donations; tax; waste; redistribution; experiments
    Umfang: 1 Online-Ressource (circa 44 Seiten), Illustrationen
  13. Gasoline, guns, and giveaways
    is there new capacity for redistribution to end three quarters of global poverty?
    Erschienen: August 2016
    Verlag:  Center for Global Development, Washington, DC

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    Schriftenreihe: Working paper / Center for Global Development ; 433
    Schlagworte: poverty; inequality; redistribution
    Umfang: 1 Online-Ressource (circa 38 Seiten), Illustrationen
  14. Inflation, currency depreciation and households balance sheet in Uruguay
    Erschienen: [2015]
    Verlag:  Banco Central del Uruguay, [Montevideo, Uruguay]

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    Schriftenreihe: Documento de trabajo / Banco Central del Uruguay ; no 2015, 009
    Schlagworte: inflation; nominal wealth; redistribution; housholds
    Umfang: 1 Online-Ressource (circa 26 Seiten), Illustrationen
  15. Pareto-improving optimal capital and labor taxes
    Erschienen: March 2016
    Verlag:  GSE, Graduate School of Economics, Barcelona

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    Schriftenreihe: Barcelona GSE working paper series ; no 887
    Schlagworte: fiscal policy; Pareto-improving tax reform; redistribution
    Umfang: 1 Online-Ressource (circa 61 Seiten), Illustrationen
    Bemerkung(en):

    Richtiger Name der Verfasserin: Katharina Greulich

  16. Optimal redistribution with a shadow economy
    Erschienen: 2016
    Verlag:  European University Institute, Badia Fiesolana, Italy

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    hdl: 1814/43187
    Schriftenreihe: EUI working papers ; ECO 2016, 11
    Schlagworte: shadow economy; informal labor market; income taxation; redistribution
    Umfang: 1 Online-Ressource (circa 57 Seiten), Illustrationen
  17. Financial literacy and attitudes to redistribution
    Erschienen: [2017]
    Verlag:  [University of Glasgow, Adam Smith Business School], [Glasgow]

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    Schriftenreihe: [Discussion papers / University of Glasgow, Adam Smith Business School ; 2017, 03]
    Schlagworte: Financial literacy; redistribution; inequality; attitudes; Great Britain
    Umfang: 1 Online-Ressource (circa 58 Seiten), Illustrationen
  18. Financial literacy and attitudes to redistribution
    Erschienen: 28th February 2017
    Verlag:  The University of Sheffield, Department of Economics, Sheffield, UK

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    Schriftenreihe: Sheffield economic research paper series ; SERPS no. 2017007 (February 2017)
    Schlagworte: Financial literacy; redistribution; inequality; attitudes; Great Britain
    Umfang: 1 Online-Ressource (circa 59 Seiten), Illustrationen
  19. General equilibrium effects of immigration in Germany
    search and matching approach
    Erschienen: [2017]
    Verlag:  Institut de recherches économiques et sociales de l'Université catholique de Louvain, Louvain-la-Neuve, Belgique

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    hdl: 2078.1/185594
    Schriftenreihe: Discussion paper / Institut de recherches économiques et sociales de l'Université catholique de Louvain ; 2017, 8
    Schlagworte: search frictions; immigration; general equilibrium; redistribution; welfare
    Umfang: 1 Online-Ressource (circa 47 Seiten), Illustrationen
  20. Globalisation and income inequality revisited
    fellowship initiative "Challenges to Integrated Markets"
    Erschienen: 2017
    Verlag:  Publications Office of the European Union, Luxembourg

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    ISBN: 9789279649035
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    Schriftenreihe: Array ; 056 (July 2017)
    Schlagworte: globalisation; income inequality; redistribution; instrumental variable estimation; panel econometrics; development levels; transition economies
    Umfang: 1 Online-Ressource (circa 48 Seiten), Illustrationen
  21. Analytic foundations
    measuring the redistributive impact of taxes and transfers
    Erschienen: 1/3/17
    Verlag:  Center for Global Development, Washington, DC

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    Schriftenreihe: Working paper / Center for Global Development ; 446 (January 2017)
    Schlagworte: Taxes; subsidies; redistribution; fiscal transfers
    Umfang: 1 Online-Ressource (circa 71 Seiten), Illustrationen
  22. Evaluating options for shifting tax burden to top income earners
    Erschienen: November 2015
    Verlag:  FEDEA, [Madrid]

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    Schriftenreihe: Documento de trabajo / FEDEA ; 2015, 12
    Schlagworte: Einkommensverteilung; Einkommensteuertarif; Steuerreform; Verteilungswirkung; Simulation; Spanien; inequality; redistribution; top incomes; decomposition; microsimulation
    Umfang: 1 Online-Ressource (circa 26 Seiten), Illustrationen