On the optimality of the Nordic system of dual income taxation

Publikation: Bidrag til tidsskriftTidsskriftartikelfagfællebedømt

Standard

On the optimality of the Nordic system of dual income taxation. / Nielsen, Søren Bo; Sørensen, Peter Birch.

I: Journal of Public Economics, Bind 63, Nr. 3, 1997, s. 311-329.

Publikation: Bidrag til tidsskriftTidsskriftartikelfagfællebedømt

Harvard

Nielsen, SB & Sørensen, PB 1997, 'On the optimality of the Nordic system of dual income taxation', Journal of Public Economics, bind 63, nr. 3, s. 311-329. https://doi.org/10.1016/S0047-2727(96)01597-6

APA

Nielsen, S. B., & Sørensen, P. B. (1997). On the optimality of the Nordic system of dual income taxation. Journal of Public Economics, 63(3), 311-329. https://doi.org/10.1016/S0047-2727(96)01597-6

Vancouver

Nielsen SB, Sørensen PB. On the optimality of the Nordic system of dual income taxation. Journal of Public Economics. 1997;63(3):311-329. https://doi.org/10.1016/S0047-2727(96)01597-6

Author

Nielsen, Søren Bo ; Sørensen, Peter Birch. / On the optimality of the Nordic system of dual income taxation. I: Journal of Public Economics. 1997 ; Bind 63, Nr. 3. s. 311-329.

Bibtex

@article{b249f6e074c611dbbee902004c4f4f50,
title = "On the optimality of the Nordic system of dual income taxation",
abstract = "In recent years the Nordic countries have introduced a so-called dual income tax which combines a proportional tax on capital income with progressive taxation of labour income. The paper argues that this asymmetric treatment of the two types of income can be defended on pure efficiency grounds, because the progressivity of the labour income tax serves to reduce the private return to human capital investment, thereby offsetting the tendency of a proportional comprehensive income tax to discriminate in favour of such investment. The analysis is based on an overlapping generations model of a small open economy where consumers face a trade-off between investment in human capital and investment in non-human capital. Extended versions of the model allow for liquidity constraints and an endogenous labour-leisure choice",
author = "Nielsen, {S{\o}ren Bo} and S{\o}rensen, {Peter Birch}",
note = "JEL classification: H21, H24",
year = "1997",
doi = "10.1016/S0047-2727(96)01597-6",
language = "English",
volume = "63",
pages = "311--329",
journal = "Journal of Public Economics",
issn = "0047-2727",
publisher = "Elsevier",
number = "3",

}

RIS

TY - JOUR

T1 - On the optimality of the Nordic system of dual income taxation

AU - Nielsen, Søren Bo

AU - Sørensen, Peter Birch

N1 - JEL classification: H21, H24

PY - 1997

Y1 - 1997

N2 - In recent years the Nordic countries have introduced a so-called dual income tax which combines a proportional tax on capital income with progressive taxation of labour income. The paper argues that this asymmetric treatment of the two types of income can be defended on pure efficiency grounds, because the progressivity of the labour income tax serves to reduce the private return to human capital investment, thereby offsetting the tendency of a proportional comprehensive income tax to discriminate in favour of such investment. The analysis is based on an overlapping generations model of a small open economy where consumers face a trade-off between investment in human capital and investment in non-human capital. Extended versions of the model allow for liquidity constraints and an endogenous labour-leisure choice

AB - In recent years the Nordic countries have introduced a so-called dual income tax which combines a proportional tax on capital income with progressive taxation of labour income. The paper argues that this asymmetric treatment of the two types of income can be defended on pure efficiency grounds, because the progressivity of the labour income tax serves to reduce the private return to human capital investment, thereby offsetting the tendency of a proportional comprehensive income tax to discriminate in favour of such investment. The analysis is based on an overlapping generations model of a small open economy where consumers face a trade-off between investment in human capital and investment in non-human capital. Extended versions of the model allow for liquidity constraints and an endogenous labour-leisure choice

U2 - 10.1016/S0047-2727(96)01597-6

DO - 10.1016/S0047-2727(96)01597-6

M3 - Journal article

VL - 63

SP - 311

EP - 329

JO - Journal of Public Economics

JF - Journal of Public Economics

SN - 0047-2727

IS - 3

ER -

ID: 155823