Pareto Weights in Practice: Income Inequality and Tax Reform

Yongsung Chang, Sun-Bin Kim and Bo Hyun Chang
Additional contact information
Bo Hyun Chang: University of Rochester

No 224, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: We develop a quantitative, heterogeneous-agents general equilibrium model that reproduces the income inequalities of 31 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.

Date: 2015
New Economics Papers: this item is included in nep-dge, nep-ltv, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2015/paper_224.pdf (application/pdf)

Related works:
Working Paper: Pareto Weights in Practice: Income Inequality and Tax reform (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed015:224

Access Statistics for this paper

More papers in 2015 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().