Kaplow, Louis
Market power and income taxation / Louis Kaplow .-- , 2021
Resumen.
Bibliografía.
This article analyzes concerns about market power and inequality in a model with multiple sectors, heterogeneous abilities, endogenous labor supply, and nonlinear income taxation. Proportional markups with no profit dissipation have no effect on the economy, and a policy that reduces a nonproportional markup raises (lowers) welfare when it is higher (lower) than a weighted average of other markups. With proportional (partial or full) profit dissipation, proportional markups are equivalent to a downward shift of the distribution of abilities, and the optimal policy rule with nonproportional markups maximizes consumer plus producer surplus despite concerns for distribution and labor supply distortion.
RENTA
IMPUESTOS
MERCADO
DESIGUALDAD
MODELOS ECONOMETRICOS
American Economic Journal : Economic Policy 1945-7731v. 13, n. 4, November 2021, p. 329-354
Market power and income taxation / Louis Kaplow .-- , 2021
Resumen.
Bibliografía.
This article analyzes concerns about market power and inequality in a model with multiple sectors, heterogeneous abilities, endogenous labor supply, and nonlinear income taxation. Proportional markups with no profit dissipation have no effect on the economy, and a policy that reduces a nonproportional markup raises (lowers) welfare when it is higher (lower) than a weighted average of other markups. With proportional (partial or full) profit dissipation, proportional markups are equivalent to a downward shift of the distribution of abilities, and the optimal policy rule with nonproportional markups maximizes consumer plus producer surplus despite concerns for distribution and labor supply distortion.
RENTA
IMPUESTOS
MERCADO
DESIGUALDAD
MODELOS ECONOMETRICOS
American Economic Journal : Economic Policy 1945-7731v. 13, n. 4, November 2021, p. 329-354