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Replication Data for: Optimal Income Taxation with Present Bias

Resource Type
Dataset : census/enumeration data, program source code, survey data
  • Lockwood, Benjamin B. (University of Pennsylvania)
Publication Date
Free Keywords
present bias; optimal taxation
  • Abstract

    Work often entails up-front effort costs in exchange for delayed benefits, and mounting evidence documents present bias over effort in the face of such delays. This paper studies the implications for the optimal income tax. Optimal tax rates are computed for present-biased workers who choose multiple dimensions of labor effort, some of which occur prior to compensation. Present bias reduces optimal tax rates, with a larger effect when the elasticity of taxable income is high. Optimal marginal tax rates may be negative at low incomes, providing an alternative, corrective rationale for work subsidies like the Earned Income Tax Credit.
This study is freely available to the general public via web download.
  • Has version
    DOI: 10.3886/E117264V1
  • Lockwood, Benjamin. “Optimal Taxation with Present Bias.” American Economic Journal: Economic Policy, n.d.

Update Metadata: 2020-10-26 | Issue Number: 1 | Registration Date: 2020-10-26

Lockwood, Benjamin B. (2020): Replication Data for: Optimal Income Taxation with Present Bias. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.