Found 8 article(s) for author 'Matthew Weinzierl'

Popular Acceptance of Inequality due to Innate Brute Luck and Support for Classical Benefit-Based Taxation

Popular Acceptance of Inequality due to Innate Brute Luck and Support for Classical Benefit-Based Taxation. Matthew Weinzierl, September 9, 2017, Paper, “U.S. survey respondents’ views on distributive justice differ in two specific, related ways from what is conventionally assumed in modern optimal tax research. When expressing their preferences over allocations in stylized, hypothetical scenarios meant to isolate key features of the tax problem, a large share of respondents resist the full equalization of unequal outcomes due to innate brute luck that standard analyses recommend. A similar share prefer a classical benefit-based logic for taxes over the conventional logic of diminishing marginal social welfare. Moreover, these two views are linked: respondents who more strongly resist equalization are more likely to prefer the classical benefit-based principle. Though the Amazon Mechanical Turk survey population is not a representative sample of the U.S. population, robustness of these results across demographic traits and political views suggests that a large share of the American public holds views inconsistent with standard welfarist objectives.Link

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Positive and Normative Judgments Implicit in U.S. Tax Policy, and the Costs of Unequal Growth and Recessions

Positive and Normative Judgments Implicit in U.S. Tax Policy, and the Costs of Unequal Growth and Recessions. Matthew Weinzierl, January 2016, Paper. “Calculating the welfare implications of changes to economic policy or shocks requires economists to decide on a normative criterion. One approach is to elicit the relevant moral criteria from real-world policy choices, converting a normative decision into a positive inference, as in the recent surge of “inverse-optimum” research. We find that capitalizing on the potential of this approach is not as straightforward as we might hope. We perform the inverse-optimum inference on U.S. tax policy from 1979 through 2010 and argue that the results either undermine the normative relevance of the approach or challenge conventional assumptions upon which economists routinely rely when performing welfare evaluations.Link

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Minimum Wage Debate Is Really About Social Values

Minimum Wage Debate Is Really About Social Values. Matthew Weinzierl, December 10, 2014, Opinion. “The US federal minimum wage is not very high—it’s much lower in real terms than it has been for much of the last several decades—and it’s hard to argue that a mild increase in a low minimum wage would cause a lot of unemployment. Nevertheless, a minimum wage increase is controversial. Why is that? Because the conversation is really about much more than a technical debate on the costs and benefits. Most people are aware that the long-term economic path for the United States has some challenges…” Link

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An Exploration of Optimal Stabilization Policy

An Exploration of Optimal Stabilization Policy. N. Gregory Mankiw, Matthew Weinzierl, Spring 2011, Paper. “This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the welfare of the representative household. Although the model has Keynesian features, its policy prescriptions differ significantly from those of textbook
Keynesian analysis. Moreover, the model suggests that the…” 
Link

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An Exploration of Optimal Stabilization Policy

An Exploration of Optimal Stabilization Policy. Gregory Mankiw, Matthew Weinzierl, Spring 2011, Paper. “This paper examines the optimal response of monetary and fi…scal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the welfare of the representative household. While the model has Keynesian features, its policy prescriptions differ significantly from textbook Keynesian analysis. Moreover, the model suggests that the commonly used “bang for the buck…” Link verified August 21, 2014

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Optimal Taxation in Theory and Practice

Optimal Taxation in Theory and Practice. N. Gregory Mankiw, Matthew Weinzierl, Danny Yagan, June 2009, Paper. “We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened, redistribution has risen with income inequality, and commodity taxes are more uniform and are typically assessed on final goods. However, trends in capital taxation are mixed, and capital income tax rates remain well above the zero level recommended by theory…” Link 

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The Optimal Taxation of Height: A Case Study of Utilitarian Income Redistribution

The Optimal Taxation of Height: A Case Study of Utilitarian Income Redistribution. N. Gregory Mankiw, Matthew Weinzierl, December 2007, Paper. “Should the income tax system include a tax credit for short taxpayers and a tax surcharge for tall ones? This paper shows that the standard Utilitarian framework for tax policy analysis answers this question in the affirmative. Moreover, based on the empirical distribution of height and wages, the optimal height tax is substantial: a tall person earning $50,000 should pay about $4,500 more in taxes than a short person earning the same income. This result has…” Link

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