Replication data for: Optimal Mirrleesean Taxation in a Ben-Porath Economy
- Kapička, Marek
AbstractI characterize optimal taxes in a life-cycle economy where ability and human capital are unobservable. I show that unobservable human capital effectively makes preferences over labor nonseparable across age. I generalize the static optimal tax formulas to account for such nonseparabilities and show how they depend both on own-Frisch labor elasticities and cross-Frisch labor elasticities. I calibrate the economy to US data. I find that the optimal marginal income taxes decrease with age, in contrast to both the US tax code and to a model with observable human capital. I demonstrate that the behavior of cross Frisch elasticities is essential in explaining the decline. (JEL D91, H21, H24, J24)
Is supplement to
DOI: 10.1257/mac.20110110 (Text)
Kapicka, Marek. “Optimal Mirrleesean Taxation in a Ben-Porath Economy.” American Economic Journal: Macroeconomics 7, no. 2 (April 2015): 219–48. https://doi.org/10.1257/mac.20110110.
- ID: 10.1257/mac.20110110 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13