Taxes, transfers, and employment in an incomplete markets model

Jorge Alonso-Ortiz (jorge.alonso@itam.mx) and Richard Rogerson

No 2010-07, FRB Atlanta CQER Working Paper from Federal Reserve Bank of Atlanta

Abstract: Tax and transfer programs are analyzed in the context of a model with idiosyncratic productivity shocks and incomplete markets. The effects are contrasted with those obtained in a stand-in household model featuring no idiosyncratic shocks and complete markets. The main finding is that the impact on hours remains very large, but the welfare consequences are very different. The analysis also suggests that tax and transfer policies have large effects on average labor productivity via selection effects on employment.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

Downloads: (external link)
http://www.frbatlanta.org/documents/cqer/publicationscq/cqerwp/cqer_wp10-07.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.frbatlanta.org/documents/cqer/publicationscq/cqerwp/cqer_wp10-07.pdf [301 Moved Permanently]--> https://www.frbatlanta.org/documents/cqer/publicationscq/cqerwp/cqer_wp10-07.pdf [301 Moved Permanently]--> https://www.atlantafed.org/documents/cqer/publicationscq/cqerwp/cqer_wp10-07.pdf)

Related works:
Journal Article: Taxes, transfers and employment in an incomplete markets model (2010)
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:fip:fedacq:2010-07

Ordering information: This working paper can be ordered from
pubs@frbatlanta.org

Access Statistics for this paper

More papers in FRB Atlanta CQER Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Bibliographic data for series maintained by Rob Sarwark (rob.sarwark@atl.frb.org).