Artikel
Optimal Income Tax Rates for the Korean Economy
Based on a quantitative, heterogeneous agent general equilibrium model, we compute the optimal tax rates for labor and capital incomes for the Korean economy. According to our model, a more progressive income tax schedule along with a higher capital tax rate can increase average welfare by as much as 0.86% of permanent consumption. Approximately 64% of house-holds, those with low assets and low productivity, are better off when a more progressive optimal tax schedule is adopted. Despite the potentially significant welfare gains, our calculation should be interpreted with caution because our benchmark model does not take into account possible capital outflows or the increased administrative costs associated with high taxes.
- Language
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Englisch
- Bibliographic citation
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Journal: KDI Journal of Economic Policy ; ISSN: 2586-4130 ; Volume: 37 ; Year: 2015 ; Issue: 3 ; Pages: 1-30 ; Sejong: Korea Development Institute (KDI)
- Classification
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Wirtschaft
Aggregate Factor Income Distribution
Fiscal Policy
Taxation and Subsidies: Efficiency; Optimal Taxation
- Subject
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Inequality
Korean Economy
Optimal Income Taxes
Progressivity Capital Tax
- Event
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Geistige Schöpfung
- (who)
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Chang, Yong Sung
Kim, Sun-Bin
Chang, Bo Hyun
- Event
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Veröffentlichung
- (who)
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Korea Development Institute (KDI)
- (where)
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Sejong
- (when)
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2015
- DOI
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doi:10.23895/kdijep.2015.37.3.1
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Chang, Yong Sung
- Kim, Sun-Bin
- Chang, Bo Hyun
- Korea Development Institute (KDI)
Time of origin
- 2015
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