Efficient taxation with differential risks of dependence and mortality

Y. Nishimura () and Pierre Pestieau
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Y. Nishimura: Osaka University

No 2015018, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: The purpose of this note is to analyze the optimal tax and transfer policies that should be conducted in a society where individuals differ according to their productivity and their risk of mortality and dependency. We show that according to the most reasonable estimates of correlation among these three characteristics, an optimal policy should consist of a tax on earning and second period consumption and of a subsidy on long term care spending. The sign of the tax on saving is ambiguous but we can expect a positive tax on saving in reasonable cases.

Keywords: long term care; mortality risk; efficient taxation (search for similar items in EconPapers)
JEL-codes: H2 H5 (search for similar items in EconPapers)
Date: 2015-04-04
New Economics Papers: this item is included in nep-pbe
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Related works:
Journal Article: Efficient taxation with differential risks of dependence and mortality (2016)
Working Paper: Efficient Taxation with Differential Risks of Dependence and Mortality (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2015018

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