The Experts below are selected from a list of 115347 Experts worldwide ranked by ideXlab platform
Caroline Weber - One of the best experts on this subject based on the ideXlab platform.
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does the earned Income tax credit reduce saving by low Income households
National Tax Journal, 2016Co-Authors: Caroline WeberAbstract:This paper analyzes the effect of the Earned Income Tax Credit (EITC) on Investment Income. Policy-makers have devoted substantial time and resources toward increasing the saving rate of low-Income households, yet the EITC provides a substantial disincentive for individuals to save and realize Investment Income. I find that a 1 percent increase in the after-tax return to saving causes a 3.05 percent increase in Investment Income. Nearly 40 percent of the decline over the last two decades in the fraction of EITC recipients with savings in Income-bearing accounts can be explained by changing EITC incentives.
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Three Essays in Taxation.
2012Co-Authors: Caroline WeberAbstract:This paper analyzes the effect of the Earned Income Tax Credit (EITC) on non-labor Income, particularly Investment Income. Policy-makers have devoted substantial time and resources toward increasing the saving rate of low-Income households with programs like the Saver’s Credit and Individual Development Accounts. Yet the EITC—the largest federal cash transfer program in the U.S.—provides a substantial disincentive for individuals to save and realize Investment Income because EITC benefits decline as Investment Income rises over certain Income ranges. I find a significant response of Investment Income to these disincentives both when I semi-parametrically estimate the change in Investment Income in the region in which non-labor Income begins being taxed, and also when I estimate the parameter parametrically using differences in tax rate changes between taxpayers with differing numbers of dependents for identification. A one percent increase in the after-tax return to saving causes a 3.05 percent increase in Investment Income. Nearly 40 percent of the decline over the last two decades in the fraction of EITC recipients with savings in Income-bearing accounts can be explained by changing EITC incentives.
Jostein Paulsen - One of the best experts on this subject based on the ideXlab platform.
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Ruin Models with Investment Income
Encyclopedia of Quantitative Finance, 2010Co-Authors: Jostein PaulsenAbstract:A rather general risk model compounded by a stochastic return process is presented, together with integral–differential equations for the ruin probability. Exact solutions, numerical solutions, and asymptotic properties are discussed. Keywords: ruin probability; linear stochastic differential equation; Volterra integral-differential equation; numerical methods; asymptotics
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Ruin models with Investment Income
Probability Surveys, 2008Co-Authors: Jostein PaulsenAbstract:This survey treats the problem of ruin in a risk model when assets earn Investment Income. In addition to a general presentation of the problem, topics covered are a presentation of the relevant integro-differential equations, exact and numerical solutions, asymptotic results, bounds on the ruin probability and also the possibility of minimizing the ruin probability by Investment and possibly reinsurance control. The main emphasis is on continuous time models, but discrete time models are also covered. A fairly extensive list of references is provided, particularly of papers published after 1998. For more references to papers published before that, the reader can consult [47].
Simone Auer - One of the best experts on this subject based on the ideXlab platform.
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Monetary policy shocks and foreign Investment Income: evidence from a large Bayesian VAR
Journal of International Money and Finance, 2019Co-Authors: Simone AuerAbstract:This paper assesses the transmission of monetary policy in a large Bayesian vector autoregression based on the approach proposed by Banbura, Giannone and Reichlin (2010). The paper analyzes the impact of monetary policy shocks in the United States and Canada not only on a range of domestic aggregates, trade flows, and exchange rates, but also foreign Investment Income. The analysis provides three main results. First, a surprise monetary policy action has a statistically and economically significant impact on both gross and net foreign Investment Income flows in both countries. Against the background of growing foreign wealth and Investment Income, this result provides preliminary evidence that foreign balance-sheet channels might play an increasingly important role for monetary transmission. Second, the impact of monetary policy on foreign Investment Income flows differs considerably across asset categories and over time, suggesting that the Investment instruments and the currency denomination of a country's foreign assets and liabilities are potentially relevant for the way in which monetary policy affects the domestic economy. Finally, the results support existing evidence on the effectiveness of large vector autoregressions and the Bayesian shrinkage approach in addressing the curse of dimensionality and eliminating price and exchange rate puzzles.
James R. Repetti - One of the best experts on this subject based on the ideXlab platform.
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Democracy and Opportunity: A New Paradigm in Tax Equity
Vanderbilt Law Review, 2007Co-Authors: James R. RepettiAbstract:Although there is consensus about the need for equity, academics and policy makers disagree about the best tax system because we have ignored the need to first identify equity goals appropriate for a just government and then to design a tax system to help achieve those goals. This article proposes that the principal equity goal underlying a just government is the creation of equal opportunities for all citizens to achieve self realization, i.e. to maximize their potential. It proposes, therefore, that a tax should be designed to achieve equal opportunity for self realization as one of its principal goals. Viewing equal opportunity for self realization as a design issue leads to the identification of another principle that is foundational - the promotion of democracy. Both political philosophy and empirical literature suggest that equal access to the electoral process and participation in the community has to exist in order for equal opportunity for self realization to exist. Designing a tax system to help achieve these goals will not only increase equity, but also may provide efficiency gains that analysts have previously ignored. To illustrate the importance of designing a tax system based upon these equity principles, this article revisits the debate about the desirability of an Income tax versus a consumption tax. It argues that a progressive Income tax, which limits loss deductions, is better than an ideal consumption tax in establishing the conditions for equal opportunity for self realization and democracy. A progressive Income tax that limits loss deductions burdens Investment Income, which is a major source of political power. In contrast, a consumption tax cannot burden the disproportionate political power of the wealthy because it only burdens Investment Income in narrow situations and wealthy individuals only consume a small percentage of their total Income. Although taxpayers can use portfolio adjustments to eliminate the burden on Investment Income in an ideal Income tax, they have not used such adjustments in our actual Income tax. This behavior may result from taxpayer concern that portfolio adjustments can decrease the after-tax return below that obtained in a fully taxable situation due to our tax system's limitations on loss deductions and changes in applicable tax rates. This article also analyzes some other efficiency and equity claims for the two forms of taxes. The efficiency claims for an ideal consumption tax versus our existing Income tax are overstated when viewed in the context of real-world systems that take into account taxpayer behavior and transition relief. Given the uncertain efficiency gains of a consumption tax in the real world, there is a strong argument that the equity goals discussed herein should govern the selection of a tax system. Such equity goals favor a progressive Income tax that burdens Investment Income.
Volker Grossmann - One of the best experts on this subject based on the ideXlab platform.
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Risky Human Capital Investment, Income Distribution, and Macroeconomic Dynamics
Journal of Macroeconomics, 2008Co-Authors: Volker GrossmannAbstract:This paper examines the implications of human capital risk for the relationship between inequality and economic development. It argues that due to missing insurance markets for human capital risk, the initial distribution of family wealth may play an important role for an economy's process of development fueled by human capital accumulation. The analysis suggests that, in the absence of credit constraints, higher inequality tends to increase the aggregate human capital stock and per capita Income, under conditions which are supported empirically for advanced countries. Taking additionally into account that, due to borrowing constraints, higher inequality impedes human capital Investment in poorer economies, this suggests a non-linear relationship between inequality and economic development.
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Risky Human Capital Investment, Income Distribution, and Macroeconomic Dynamics
2004Co-Authors: Volker GrossmannAbstract:This paper demonstrates that the role of the personal Income distribution for an economy's process of development through risky human capital accumulation critically depends on the shape of the saving function. Empirical evidence for the U.S. strongly suggests that the marginal propensity to save is increasing in Income, a property which so far has not been allowed for in the literature on human capital, Income distribution and macroeconomics. Doing so, the present analysis suggests that the impact of higher inequality on the aggregate human capital stock, and thus, on growth is positive under rather weak conditions. Results heavily rely on a positive impact of parents. Income on children's human capital Investments, which holds under standard assumptions on labor Income risk and risk aversion in the model, and is largely supported by empirical evidence.
