scholarly journals High Marginal Tax Rates on the Top 1%? Lessons from a Life Cycle Model with Idiosyncratic Income Risk

2014 ◽  
Author(s):  
Fabian Kindermann ◽  
Dirk Krueger
Keyword(s):  
Life Cycle ◽  
Tax Rates ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Income Risk ◽  
Marginal Tax Rates

scholarly journals Marginal Tax Rates and Income Inequality in a Life-Cycle Model

1999 ◽  
Vol 89 (5) ◽  
pp. 1197-1215 ◽  
Author(s):  
David Altig ◽  
Charles T Carlstrom
Keyword(s):  
Life Cycle ◽  
Income Inequality ◽  
Computable General Equilibrium ◽  
Tax Rates ◽  
Cycle Model ◽  
Marginal Tax Rate ◽  
Tax Rate ◽  
Marginal Tax Rates ◽  
Quantitative Impact ◽  
Distribution Of Income

In this paper we study the quantitative impact of marginal tax rates on the distribution of income. Our methodology builds on computable general-equilibrium framework. We find that distortions from marginal tax rate changes of the sort implied by the Tax Reform Act of 1986 have sizable effects on income inequality in a reasonably quantified life-cycle setting: In our model rate changes alone capture half the increase in the pretax Gini that actually occurred between 1984 and 1989. (JEL C68, D31, H30, H20)

Family planning in a life‐cycle model with income risk

2020 ◽  
Vol 35 (5) ◽  
pp. 567-586 ◽  
Author(s):  
Mette Ejrnæs ◽  
Thomas H. Jørgensen
Keyword(s):  
Life Cycle ◽  
Family Planning ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Income Risk

scholarly journals OPTIMAL SAVINGS FOR RETIREMENT: THE ROLE OF INDIVIDUAL ACCOUNTS

2016 ◽  
Vol 21 (6) ◽  
pp. 1361-1388 ◽  
Author(s):  
Julia Le Blanc ◽  
Almuth Scholl
Keyword(s):  
Life Cycle ◽  
Low Income ◽  
Welfare Effects ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Income Risk ◽  
Income Groups ◽  
Quantitative Results ◽  
Individual Accounts

We employ a life-cycle model with income risk to analyze how tax-deferred individual accounts affect households' savings for retirement. We consider voluntary accounts as opposed to mandatory accounts with minimum contribution rates. We contrast add-on accounts with carve-out accounts that partly replace social security contributions. Quantitative results suggest that making add-on accounts mandatory has adverse welfare effects across income groups. Carve-out accounts generate positive welfare effects across all income groups, but gains are lower for low income earners. Default investment rules in individual accounts have a modest impact on welfare.

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