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Content archived on 2024-06-18

Effects of Progressive Taxation on Economic Growth, Labor Supply and Income Inequality

Objective

The proposed project aims to develop a dynamic macroeconomic model that incorporates progressive taxation and income distribution. For this purpose, it will focus on endogenous growth models with heterogeneous agents and complete asset markets. This model will be used to analyze the aggregate and distributional effects of income tax policy in European economies with respect to major socioeconomic issues such as the declining working hours, income inequality-economic growth relationship, and tax reform proposals. Moreover, the effects of informality will be analyzed for countries with big informal sectors such as Greece, Italy, and Turkey. The proposed project is novel in two main aspects: (1) methodologically, it advances the literature on heterogeneous agent models with complete asset markets and (2) the developed model will be used to analyze important policy issues for Europe that are not discussed at length in a dynamic general equilibrium setting yet.

Fields of science (EuroSciVoc)

Topic(s)

Call for proposal

FP7-PEOPLE-2010-RG
See other projects for this call

Funding Scheme

MC-IRG - International Re-integration Grants (IRG)

Coordinator

BOGAZICI UNIVERSITESI
EU contribution
€ 93 750,00
Address
BEBEK
34342 Istanbul
Türkiye
Region
İstanbul İstanbul İstanbul
Activity type
Higher or Secondary Education Establishments
Links
Total cost
No data