Ramsey optimal taxation with wage rigidities
Autor(a) principal: | |
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Data de Publicação: | 2017 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/22685 |
Resumo: | This thesis aims to assess the impact of downward wage rigidities on optimal tax- ation. We study a dynamic general equilibrium neoclassical growth model for a one sector, cashless stochastic closed economy with an in nitely lived representative house- hold, a representative rm with a constant returns to scale technology, a government deciding how to nance its exogenous expenditures without access to lump sum taxes, and competitive markets. We conclude that the optimal labor income tax exhibits both a reactive and a precautionary nature. Regarding the reactive nature, when the wage rigidity is binding, labor taxes increase since it is possible to raise revenue without ad- ditional distortions. On the precautionary side, the expectation of a future constraint lowers labor taxes, which, in turn, decreases the wage that clears the labor market, thus loosening future constraints. In the nominal small open economy with downwardly rigid nominal wages and exogenous nominal exchange rates, we show that the same conclu- sions apply. Additionally, it is possible to use consumption taxes in such a way that the optimal capital control tax is zero for a broad family of instantaneous utility functions. Finally, we introduce a consumption tax that discriminates between the good produced in the domestic economy and the good produced abroad to show that downward wage rigidities and exogenous exchange rates are irrelevant if the correct policy is used. |
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Ramsey optimal taxation with wage rigiditiesDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis thesis aims to assess the impact of downward wage rigidities on optimal tax- ation. We study a dynamic general equilibrium neoclassical growth model for a one sector, cashless stochastic closed economy with an in nitely lived representative house- hold, a representative rm with a constant returns to scale technology, a government deciding how to nance its exogenous expenditures without access to lump sum taxes, and competitive markets. We conclude that the optimal labor income tax exhibits both a reactive and a precautionary nature. Regarding the reactive nature, when the wage rigidity is binding, labor taxes increase since it is possible to raise revenue without ad- ditional distortions. On the precautionary side, the expectation of a future constraint lowers labor taxes, which, in turn, decreases the wage that clears the labor market, thus loosening future constraints. In the nominal small open economy with downwardly rigid nominal wages and exogenous nominal exchange rates, we show that the same conclu- sions apply. Additionally, it is possible to use consumption taxes in such a way that the optimal capital control tax is zero for a broad family of instantaneous utility functions. Finally, we introduce a consumption tax that discriminates between the good produced in the domestic economy and the good produced abroad to show that downward wage rigidities and exogenous exchange rates are irrelevant if the correct policy is used.Esta tese pretende avaliar o impacto de rigidezes salariais decrescentes sobre a política scal óptima. Para tal, usamos um modelo dinâmico de equilibrío geral, concordante com a corrente neoclásica, para uma economia estocástica fechada, sem moeda, de horizonte temporal in nito com uma família representativa, uma empresa representativa que usa uma tecnologia com rendimentos constantes à escala num único sector, um governo que precisa de nanciar a sequência exógena de gastos sem ter acesso a impostos lump sum, e mercados competitivos. É possível concluir que o imposto óptimo sobre o rendimento do trabalho apresenta características reactivas e precautórias. No que respeita à vertente reactiva, quando a restrição salarial é activa, o imposto deve aumentar visto ser possível recolher mais receita sem introduzir distorções adicionais. Na vertente precautória, a ex- pectativa de uma restrição futura diminui o imposto, o que, por sua vez, reduz o salário que equilibra o mercado do trabalho, relaxando, desta forma, as restrições futuras. Para a pequena economia aberta nominal, com rigidez decrescente no salário nominal junta- mente com taxas de câmbio nominais exógenas, o mesmo resultado é obtido. Além disso, mostramos que é possível implementar impostos sobre o consumo tais que o imposto óptimo de controlo de capitais seja zero para uma variedade de funções utilidade instan- tâneas. Finalmente, introduzimos um imposto sobre o consumo que discrimina o bem doméstico do bem produzido no exterior para demonstrar que rigidezes decrescentes no salário nominal, juntamente com taxas de câmbio nominais exógenas, se tornam irrele- vantes para uma correcta utilização desta política.Reis, Catarina Luís Monteiro dosVeritati - Repositório Institucional da Universidade Católica PortuguesaBelchior, Daniel da Silva2017-07-31T10:54:53Z2017-07-1820172017-07-18T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/22685TID:201725363enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:28:54Zoai:repositorio.ucp.pt:10400.14/22685Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:18:49.136528Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Ramsey optimal taxation with wage rigidities |
title |
Ramsey optimal taxation with wage rigidities |
spellingShingle |
Ramsey optimal taxation with wage rigidities Belchior, Daniel da Silva Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Ramsey optimal taxation with wage rigidities |
title_full |
Ramsey optimal taxation with wage rigidities |
title_fullStr |
Ramsey optimal taxation with wage rigidities |
title_full_unstemmed |
Ramsey optimal taxation with wage rigidities |
title_sort |
Ramsey optimal taxation with wage rigidities |
author |
Belchior, Daniel da Silva |
author_facet |
Belchior, Daniel da Silva |
author_role |
author |
dc.contributor.none.fl_str_mv |
Reis, Catarina Luís Monteiro dos Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Belchior, Daniel da Silva |
dc.subject.por.fl_str_mv |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This thesis aims to assess the impact of downward wage rigidities on optimal tax- ation. We study a dynamic general equilibrium neoclassical growth model for a one sector, cashless stochastic closed economy with an in nitely lived representative house- hold, a representative rm with a constant returns to scale technology, a government deciding how to nance its exogenous expenditures without access to lump sum taxes, and competitive markets. We conclude that the optimal labor income tax exhibits both a reactive and a precautionary nature. Regarding the reactive nature, when the wage rigidity is binding, labor taxes increase since it is possible to raise revenue without ad- ditional distortions. On the precautionary side, the expectation of a future constraint lowers labor taxes, which, in turn, decreases the wage that clears the labor market, thus loosening future constraints. In the nominal small open economy with downwardly rigid nominal wages and exogenous nominal exchange rates, we show that the same conclu- sions apply. Additionally, it is possible to use consumption taxes in such a way that the optimal capital control tax is zero for a broad family of instantaneous utility functions. Finally, we introduce a consumption tax that discriminates between the good produced in the domestic economy and the good produced abroad to show that downward wage rigidities and exogenous exchange rates are irrelevant if the correct policy is used. |
publishDate |
2017 |
dc.date.none.fl_str_mv |
2017-07-31T10:54:53Z 2017-07-18 2017 2017-07-18T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/22685 TID:201725363 |
url |
http://hdl.handle.net/10400.14/22685 |
identifier_str_mv |
TID:201725363 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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