Condie, Scott S.
Natural limits of wealth inequality and the effectiveness of tax policy / Scott S. Condie, Richard W. Evans and Kerk L. Phillips .-- , 2019
Disponible también en formato electrónico a través de la Biblioteca del IEF.
Resumen.
Bibliografía.
This article examines Thomas Piketty’s thesis that there are no natural limits on the accumulation of wealth. We undertake our examination in the context of a simple general equilibrium model with infinitely lived dynasties. We show that extreme wealth accumulation does not happen in general equilibrium unless capital and labor are substitutes, an assumption which
also leads to unbalanced growth. We also show that even with unbalanced growth, differences in rates of return and effective labor are not sufficient to cause unbounded inequality. Only permanent savings rate differences can lead to extreme wealth concentration. Finally, we show that while a flat wealth tax will not eliminate extreme wealth concentration, both a graduated
wealth tax and a flat income tax will.
RENTA
DISTRIBUCION
DESIGUALDAD
IMPUESTOS
POLITICA FISCAL
MODELOS ECONOMETRICOS
Evans, Richard W.
Phillips, Kerk L.
Public Finance Review 0048-5853 v. 47, n. 1, January 2019, p. 32-57
Natural limits of wealth inequality and the effectiveness of tax policy / Scott S. Condie, Richard W. Evans and Kerk L. Phillips .-- , 2019
Disponible también en formato electrónico a través de la Biblioteca del IEF.
Resumen.
Bibliografía.
This article examines Thomas Piketty’s thesis that there are no natural limits on the accumulation of wealth. We undertake our examination in the context of a simple general equilibrium model with infinitely lived dynasties. We show that extreme wealth accumulation does not happen in general equilibrium unless capital and labor are substitutes, an assumption which
also leads to unbalanced growth. We also show that even with unbalanced growth, differences in rates of return and effective labor are not sufficient to cause unbounded inequality. Only permanent savings rate differences can lead to extreme wealth concentration. Finally, we show that while a flat wealth tax will not eliminate extreme wealth concentration, both a graduated
wealth tax and a flat income tax will.
RENTA
DISTRIBUCION
DESIGUALDAD
IMPUESTOS
POLITICA FISCAL
MODELOS ECONOMETRICOS
Evans, Richard W.
Phillips, Kerk L.
Public Finance Review 0048-5853 v. 47, n. 1, January 2019, p. 32-57