scholarly journals Pareto-Improving Carbon-Risk Taxation

2021 ◽  
Author(s):  
Laurence Kotlikoff ◽  
Felix Kubler ◽  
Andrey Polbin ◽  
Simon Scheidegger
Keyword(s):  
Overlapping Generations ◽  
Climate Risk ◽  
Energy Usage ◽  
Overlapping Generations Model ◽  
Carbon Taxation ◽  
Pareto Improving ◽  
The Relationship ◽  
Climate Disasters ◽  
Average Damage ◽  
Climate Problem

Abstract Anthropogenic climate change produces two conceptually distinct negative economic externalities. The first is an expected path of climate damage. The second, the focus of this paper, is an expected path of economic risk. To isolate the climate-risk problem, we consider three mean-zero, symmetric shocks in our 12-period, overlapping generations model. These shocks impact dirty energy usage (carbon emissions), the relationship between carbon concentration and temperature, and the connection between temperature and damages. By construction, Our model exhibits a de minimis climate problem absent its shocks. However, due to non-linearities, symmetric shocks deliver negatively skewed impacts, including the potential for climate disasters. As we show, Pareto-improving carbon taxation can dramatically lower climate risk, in general, and disaster risk, in particular. The associated climate-risk tax, which is focused exclusively on limiting climate risk, can be as large as, or larger than, the carbon average-damage tax, which is focused exclusively on limiting average damage.

Capital Income Taxation, Economic Growth and Heterogeneity in the Motivation to Give

2012 ◽  
Vol 13 (3) ◽  
pp. 291-306
Author(s):  
Lars Kunze
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Overlapping Generations ◽  
Income Taxation ◽  
Capital Income ◽  
Capital Income Taxation ◽  
Overlapping Generations Model ◽  
Tax Rate ◽  
Motivation To Give ◽  
The Relationship

Abstract This study provides a comprehensive analysis of the relationship between capital income taxation and economic growth within an overlapping generations model when individuals may bequeath wealth. The altruistic concern is modeled as a synthesis of joy-of-giving and family altruism so that individuals may derive utility from the amount of bequest itself and by providing children with a disposable income later on in life. Using this framework, it is shown that, in contrast to the existing literature, increasing the capital income tax rate may well enhance growth under operative bequests.

scholarly journals Demographic change and climate change

2019 ◽  
Vol 25 (1) ◽  
pp. 5-20 ◽  
Author(s):  
Michael Rauscher
Keyword(s):  
Climate Change ◽  
Continuous Time ◽  
Overlapping Generations ◽  
Optimal Solution ◽  
Overlapping Generations Model ◽  
Emission Target ◽  
Pollution Accumulation ◽  
Business As Usual ◽  
The Impact ◽  
Climate Problem

AbstractThis paper uses a continuous-time overlapping-generations model with endogenous growth and pollution accumulation over time to study the link between longevity and global warming. It is seen that increasing longevity accelerates climate change in a business-as-usual scenario without climate policy. If a binding emission target is set exogenously and implemented via a cap-and-trade system, the price of emission permits is increasing in longevity. Longevity has no effect on the optimal solution of the climate problem if perfect intergenerational transfers are feasible. If these transfers are absent, the impact of longevity is ambiguous.

scholarly journals INCOME INEQUALITY, MOBILITY, AND THE WELFARE STATE: A POLITICAL ECONOMY MODEL

2012 ◽  
Vol 17 (6) ◽  
pp. 1198-1226 ◽  
Author(s):  
Luca Bossi ◽  
Gulcin Gumus
Keyword(s):  
Income Inequality ◽  
Welfare State ◽  
Social Insurance ◽  
Overlapping Generations ◽  
Tax Rates ◽  
Overlapping Generations Model ◽  
Public Programs ◽  
Transfer Payments ◽  
Set Up ◽  
The Welfare State

In this paper, we set up a three-period stochastic overlapping-generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. We model the size of two different public programs under the welfare state. We investigate bidimensional voting on the tax rates that determine the allocation of government revenues among transfer payments and old-age pensions. We show that the coalitions formed, the resulting political equilibria, and the demand for redistribution crucially depend on the level of income inequality and mobility.

scholarly journals Predicting Rates of Inbreeding in Populations Undergoing Selection

Genetics ◽  
2000 ◽  
Vol 154 (4) ◽  
pp. 1851-1864 ◽  
Author(s):  
John A Woolliams ◽  
Piter Bijma
Keyword(s):  
Overlapping Generations ◽  
Linear Models ◽  
Selection Process ◽  
Correction Term ◽  
Random Mating ◽  
Nonrandom Mating ◽  
Selection Processes ◽  
Genetic Contributions ◽  
The Relationship

AbstractTractable forms of predicting rates of inbreeding (ΔF) in selected populations with general indices, nonrandom mating, and overlapping generations were developed, with the principal results assuming a period of equilibrium in the selection process. An existing theorem concerning the relationship between squared long-term genetic contributions and rates of inbreeding was extended to nonrandom mating and to overlapping generations. ΔF was shown to be ~¼(1 − ω) times the expected sum of squared lifetime contributions, where ω is the deviation from Hardy-Weinberg proportions. This relationship cannot be used for prediction since it is based upon observed quantities. Therefore, the relationship was further developed to express ΔF in terms of expected long-term contributions that are conditional on a set of selective advantages that relate the selection processes in two consecutive generations and are predictable quantities. With random mating, if selected family sizes are assumed to be independent Poisson variables then the expected long-term contribution could be substituted for the observed, providing ¼ (since ω = 0) was increased to ½. Established theory was used to provide a correction term to account for deviations from the Poisson assumptions. The equations were successfully applied, using simple linear models, to the problem of predicting ΔF with sib indices in discrete generations since previously published solutions had proved complex.

Sign in / Sign up

Export Citation Format

Share Document