EFFECTS OF TAX REFORMS IN A SHIRKING MODEL WITH UNION BARGAINING

In this paper we introduce a progressive income tax in the shirking model with union bargaining presented by in Altenburg and Straub (2002). Indeed, we differentiate taxation on employees and employers for the fiscal policy analysis. The main results show that it is possible, with a constant revenue reform, to enhance employment by shifting the tax imposition towards lower firm taxation. And, that it is crucial to consider a proportional or progressive taxation on labour income in order to be able to analyse the effect on unemployment for a constant replacement rate.Labour taxation, union bargaining, efficiency wages

Understanding the U.S. distribution of wealth

This article describes the current state of economic theory intended to explain the unequal distribution of wealth among U.S. households. The models reviewed are heterogeneous agent versions of standard neoclassical growth models with uninsurable idiosyncratic shocks to earnings. The models endogenously generate differences in asset holdings as a result of the household's desire to smooth consumption while earnings fluctuate. Both of the dominant types of models--dynastic and life cycle models--reproduce the U.S. wealth distribution poorly. The article describes several features recently proposed as additions to the theory based on changes in earnings, including business ownership, higher rates of return on high asset levels, random capital gains, government programs to guarantee a minimum level of consumption, and changes in health and marital status. None of these features has been fully analyzed yet, but they all seem to have potential to move the models in the right direction.Wealth

Implementing the 35 Hour Workweek by Means of Overtime Taxation

In this paper we study the implications of taxing overtime work in order to reduce the workweek. To this purpose we study the roles played by team work, commuting costs and idiosyncratic output risk in determining the choice of the workweek. In order to obtain reliable estimates of the consequences of our policy experiment, we calibrate our model economy to the substitutability between overtime and employment using business cycle information. We find that a tax-rate of 12% of overtime wages implements the desired reduction of the workweek from 40 to 35 hours (12.5%). We also find that this tax change increases employment by 7% and reduces output and productivity by 10.2% and 4.2%, respectively. We also study a model economy with cross-sectional variations in the workweek that arise from plant-specific output risk and we find that in this model economy the tax-rates needed to achieve the same workweek reduction are significantly larger. Finally, we find that taxing overtime dampens business cycle fluctuations and that its welfare costs seem to be very largeWorkweek, Overtime, 35 Hours week, Labour Policy

Earnings and Wealth Inequality and Income Taxation: Quantifying the Trade-Offs of Switching to a Proportional Income Tax in the U.S. Ohio

This papaer quantifies the steady-state aggregate, distributinal and mobility effects of switching the U.S. to a proportional income tax system. As a perriquisite to the analysi, we propose a theory of earnings and wealth inequality capable of accounting quantitatively for the key aggregate and inequality facts of the U. S. economy. This theory is based on saving to smooth uninsured household-specific risk, for dynastic households that also have some life-cycle characteristics. A suitable calibration of our model economy replicates the U.S. growth facts, earnings and wealth distributions, the progressivity of the tax system and the size of the U.S. government. We also solve a similar model economy in which the government livies a proportional income tax to finance the same flow of government expenditures and public transfers. Our finding show that in this class of model worlds a switch from the U.S. tax system to a proporcional tax system implies the following trade-offs, i.) it increases efficiency as measured by aggregate output by 4,4%, ii. ) it increases inequality as measured by the Gini index of the wealth distribution by 10.4%, and iv.) it changes by little the mobility between the different earnings and wealth groups

Habit formation: implications for the wealth distribution

In this paper we study the role of habit formation in shaping the wealth distribution in an otherwise standard heterogeneous agents model economy with idiosyncratic uncertainty. We compare the inplications for precautionary savings and for wealth concentration between economies that only differ in the role played by habit formation. Once preferences are properly adjusted so that the Intertemporal Elasticity of Substituion is the same in all model economies studied, we find that habit formation brings a hefty increase in precautionary savings and very mild reductions in the coefficient of variation and in the Gini index of wealth. We also find that the reductions in these measures of inequality also hold when we adjust our economy so that aggregate savings are the same as in the economy without habit formation. These findings hold for both persistent and non persistent habits although for the former the quantitative size of the effects is much larger. We conclude that habit formation, while being a mechanism that increases the amount of precautionary savings generated in a model, does not change the implications for wealth inequality that arise from standard models

The degrees of knowledge to the mystical vision in the thought of Nicholas of Cusa (1401-1464)

The speculation on the topic of vision (visio), and in it around the mystical vision (visio mystica), is rich in the system of thought of Nicholas of Cusa. It is permanently present in his sermons, letters and in the rest of his theological and philosophical work. While there are various ways to address it, we propose considering it from his metaphysics of the human mind (mens human) point of view, and in it through the consideration of the degree of knowledge what the mind gradually transit in the conjectural searching of vision of the first principle from which she and all proceeds. To this end, we will address the topic of the mystical vision by considering first, the elements that Cusano gives in the context of his early sermons (before 1440). Second, through the presentation of the degrees of knowledge of the human mind, as they appear in the first great metaphysical systematization of knowledge in the books of De coniecturis (1442/3). Third, we discuss the topic in his work De visione Dei (1453). Analyzing this elements we hope to show that the topic of the mystical vision in the thought of Nicholas of Cusa is inseparable from his metaphysics of the human mind

Consideraciones en torno al De genesi de Nicolás de Cusa. Pensar más allá de la coincidentia oppositorum a la luz del nombre enigmático "idem"

In De docta ignorantia (1440), Nicholas of Cusa presents the first comprehensive formulation of his system of thought. In De coniecturis, which he began writing at the time, he not only completes the anthropology and theory of knowledge, which he suggested in De docta ignorantia, but also presents the proposal of thinking the divine beyond thecoincidentia oppositorum. In the following years, he writes a group of opuscula in which he revists the topics treated in his previous works. Notorious amongst them is the dialog De genesi (1447). In it, Cusanus speculates on one of the most cherished subjects of his investigation, i. e. the relationship between the one and the multiple, by means of a new aenigmatic name: “idem”. Our work seeks to show that Nicholas of Cusa conjectures about that problem –in terms of identity and difference– in taking up his proposal of thinking the absolute beyond the coincidentia oppositorum.En De docta ignorantia (1440) Nicolás de Cusa presenta la primera gran formulación de su sistema de pensamento. En De coniecturis, cuya redacción inicia en ese tiempo, no sólo completa la antropología y la teoría del conocimiento sugerida en De docta ignorantia sino también presenta la propuesta de pensar lo divino más allá de la coincidentia oppositorum. En los años siguientes, compone un conjunto de opúsculos en los que regressa sobre los temas abordados en las obras precedentes. Entre ellos ocupa un lugar notório el diálogo De genesi (1447). Allí el Cusano especula sobre uno de los temas caros a su investigación, i. e. la relación entre lo uno y lo múltiple, a través de un nuevo nombre enigmático: “idem”. Nuestro trabajo busca mostrar que Nicolás de Cusa conjetura sobre aquel problema –en términos de identidad y diferencia– recogiendo su propuesta de pensar lo absoluto más allá de la coincidentia oppositorum

Los grados de conocimiento hacia la visión mística en el pensamiento de Nicolás de Cusa (1401-1464)

A especulação a visão (visio), e em torno da visão mística (visio mystica), é fecunda no sistema de pensamento de Nicolau de Cusa. Encontra-se disseminada tanto nos seus sermões e cartas como no restante de sua obra teológico-filosófica. E ainda que sejam distintos os modos pelos quais se pode abordá-la, propomos tratá-la a partir da metafísica de la mente humana (humana mens), y através da consideração dos graus de conhecimento que a mente transita na busca conjetural da visão do primeiro princípio do qual ela e tudo procede. Com tal finalidade, abordaremos o tópico da visão mística mediante a consideração, em primeiro lugar, dos elementos que o Cusano brinda já no contexto de seus primeiros sermões, antes de 1440. Depois, através da apresentação dos graus do conhecimento da mente humana, tal como aparecem na primeira grande sistematização de sua metafísica do conhecimento nos livros do De coniecturis (1442/3). Finalmente, em terceiro lugar, trataremos o tópico em seu texto De visione Dei (1453). Com isso, esperamos demonstrar que o tópico da visão mística no pensamento de Nicolau de Cusa é inseparável de sua metafísica da mente humana.The speculation on the topic of vision (visio), and in it around the mystical vision (visio mystica), is rich in the system of thought of Nicholas of Cusa. It is permanently present in his sermons, letters and in the rest of his theological and philosophical work. While there are various ways to address it, we propose considering it from his metaphysics of the human mind (mens human) point of view, and in it through the consideration of the degree of knowledge what the mind gradually transit in the conjectural searching of vision of the first principle from which she and all proceeds. To this end, we will address the topic of the mystical vision by considering first, the elements that Cusano gives in the context of his early sermons (before 1440). Second, through the presentation of the degrees of knowledge of the human mind, as they appear in the first great metaphysical systematization of knowledge in the books of De coniecturis (1442/3).Third, we discuss the topic in his work De visione Dei (1453). Analyzing this elements we hope to show that the topic of the mystical vision in the thought of Nicholas of Cusa is inseparable from his metaphysics of the human mind