Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Marginal Tax Rates and Income Inequality in a Life-Cycle Model

David Altig and Charles T. Carlstrom
The American Economic Review
Vol. 89, No. 5 (Dec., 1999), pp. 1197-1215
Stable URL: http://www.jstor.org/stable/117054
Page Count: 19
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
Marginal Tax Rates and Income Inequality in a Life-Cycle Model
Preview not available

Abstract

In this paper we study the quantitative impact of marginal tax rates on the distribution of income. Our methodology builds on computable general-equilibrium framework. We find that distortions from marginal tax rate changes of the sort implied by the Tax Reform Act of 1986 have sizable effects on income inequality in a reasonably quantified life-cycle setting: In our model rate changes alone capture half the increase in the pretax Gini that actually occurred between 1984 and 1989.

Page Thumbnails

  • Thumbnail: Page 
1197
    1197
  • Thumbnail: Page 
1198
    1198
  • Thumbnail: Page 
1199
    1199
  • Thumbnail: Page 
1200
    1200
  • Thumbnail: Page 
1201
    1201
  • Thumbnail: Page 
1202
    1202
  • Thumbnail: Page 
1203
    1203
  • Thumbnail: Page 
1204
    1204
  • Thumbnail: Page 
1205
    1205
  • Thumbnail: Page 
1206
    1206
  • Thumbnail: Page 
1207
    1207
  • Thumbnail: Page 
1208
    1208
  • Thumbnail: Page 
1209
    1209
  • Thumbnail: Page 
1210
    1210
  • Thumbnail: Page 
1211
    1211
  • Thumbnail: Page 
1212
    1212
  • Thumbnail: Page 
1213
    1213
  • Thumbnail: Page 
1214
    1214
  • Thumbnail: Page 
1215
    1215