Should I stay or should I go?: the economic incentives of intergenerational taxes and transfers in Uruguay

Florencia Amábile and Rómulo A. Chumacero ()
Additional contact information
Rómulo A. Chumacero: University of Chile

International Tax and Public Finance, 2023, vol. 30, issue 2, No 8, 493-524

Abstract: Abstract This paper develops a business cycle model of a small open economy with heterogeneous agents and international labor mobility, with a particular focus on taxes and transfer policies. Migration occurs as a result of the maximization problem of families and, combined with remittances, makes consumption smoothing possible. This paper shows how transfers from the government to young people and elders, funded with distortionary taxes, prompt the migration of people of working age and, among them, some of the most skilled members of the economy. The model is calibrated to match labor mobility in various age–skill groups and aggregate cycle dynamics of the Uruguayan economy, including government transfers and migration volatility.

Keywords: Uruguay; Migration; Heterogeneous agents; DSGE; Transfers (search for similar items in EconPapers)
JEL-codes: E27 F22 H31 I25 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10797-021-09723-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:itaxpf:v:30:y:2023:i:2:d:10.1007_s10797-021-09723-9

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-021-09723-9

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().