Taxation under Learning by Doing
Bibliographic Data
| ID | 10177124 |
|---|---|
| Authors | Miltiadis Makris (0000-0001-7622-7939, University of Kent), Alessandro Pavan (0000-0002-6577-8919) |
| Year | 2021 |
| Volume | 129 |
| Issue | 6 |
| Pages | 1878-1944 |
| Publication date | 2021-01-27 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/713745 |
| OpenAlex | W3120204511 |
| Language | EN |
| Citations received | 1 |
| References cited | 37 |
We study optimal income taxation when workers’ productivity is stochastic and evolves endogenously because of learning-by-doing. Learning-by-doing calls for higher wedges, and alters the relation between wedges and tax rates. In a calibrated model, we find that reforming the US tax code brings significant welfare gains and that a simple tax code invariant to past incomes is approximately optimal. We isolate the role of learning-by-doing by comparing the aforementioned tax code to its counterpart in an economy that is identical to the calibrated one except for the exogeneity of the productivity process. Ignoring learning-by-doing calls for fundamentally different proposals
Code (set theory · Econometrics · Economics · Endogeneity · Learning effect · Learning-by-doing · Macroeconomics · Market economy · Microeconomics · Production (economics · Productivity · Public economics · Simple (philosophy · Welfare · Computer Science · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Politics, Economics, and Education Policy
Using Elasticities to Derive Optimal Income Tax Rates
Factors Affecting the Cost of Airplanes
An Exploration in the Theory of Optimum Income Taxation
On the mechanics of economic development
The Economic Implications of Learning by Doing
The Production of Human Capital and the Life Cycle of Earnings
Specific Capital, Mobility, and Wages
Optimal Taxation and Human Capital Policies over the Life Cycle
Toward an Understanding of Learning by Doing
How Much Did the Liberty Shipbuilders Learn? New Evidence for an Old Case Study
A Contribution to the Theory of Taxation
The Relationship between Unit Cost and Cumulative Quantity and the Evidence for Organizational Learning-by-Doing
| Citations per year | 0.33 |
|---|---|
| Citation span | 2023 - 2023 (1) |
| Highly cited | No |