0000000000285906
AUTHOR
Hoang Khieu
showing 2 related works from this author
Does a global wealth tax reduce inequality? When Piketty meets Mankiw
2020
Abstract We investigate the effects of a wealth tax on consumption and wealth inequality in a standard small open economy model featuring labour income heterogeneity. We show that consumption inequality and wealth inequality are identical in the long run if consumption growth exceeds output growth. Under this condition, the wealth tax reduces long run inequality under two additional conditions. First, the difference between the rate of return on wealth and the growth rate, r − g , is higher than a positive threshold. Second, the tax rate is lower than a cap which rises in r − g but decreases in labour income heterogeneity.
Progressive consumption tax, minimum consumption, and inequality
2020
Abstract In this note, we study the effects of a progressive consumption tax on wealth and consumption inequality in a model economy featuring minimum consumption. We show that increasing the lower and upper bounds of the progressive tax rate reduces wealth and consumption inequality in the long run but is not sufficient. The lower and upper bounds must not exceed the thresholds, which are decreasing functions of minimum consumption. The result is useful for empirical studies of the redistribution of wealth and consumption.