Open Access BASE2016
Pareto Weights in Practice: A Quantitative Analysis across 32 OECD Countries
Abstract
We develop a quantitative heterogeneous-agents general equilibrium model that reproduces the income inequalities of 32 countries in the Organization for Economic Co-operation and Development. Using this model, we compute the optimal income tax rate for each country under the equal-weight utilitarian social welfare function. We simulate the voting outcome for the utilitarian optimal tax reform for each country. Finally, we uncover the Pareto weights in the social welfare functions of each country that justify the current redistribution policy.
Themen
Sprachen
Englisch
Verlag
Luxembourg: Luxembourg Income Study (LIS)
Problem melden