Objective
Income and wealth inequality have surged in OECD economies over recent decades, sparking renewed debates on the optimal tax-and-transfer system. How should governments design redistribution to the poor? Which taxes should be used to finance the safety net? This proposal consists of three projects combining rich quantitative models with analytical and empirical insights to push the frontier on our understanding of the efficiency-redistribution trade-off.
Part I explores how to design income support to the poor. Since the 1980s, many OECD economies have reformed their safety net and introduced work requirements for several welfare programs. Work requirements foster efficiency as they incentivize labor supply but limit redistribution to the poorest. We document the shift in the distribution of transfers across households in the United States since the 1980s and quantify the optimal balance between standard means-tested transfers and those conditional on work requirements.
Part II explores how to adjust consumption taxes in recessions. Consumption taxes make up a large share of fiscal revenue in OECD economies, yet their regressive nature raises distributional concerns. Temporary consumption tax cuts have been recently proposed to fight recessions, with the joint goal of easing the burden on the poor and stabilizing the economy. We theoretically and quantitatively analyze the stabilization properties of temporary consumption tax cuts.
Part III explores how to raise revenues from the wealthy. Capital income taxes have been regularly proposed to finance redistribution, with no consensus on their efficiency cost. High capital income likely reflects skills of investors selecting productive private businesses, but it may also stem from the market power of wealthy investors. We examine the nature of high returns of investments in private businesses of the wealthy in Norway, and quantify their implications for the optimal level of capital taxes.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
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Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2025-STG
See all projects funded under this callHost institution
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
75794 PARIS
France
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.