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Marginal tax rates and income inequality: a quantitative-theoretic analysis

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  • David E. Altig
  • Charles T. Carlstrom

Abstract

An Auerbach-Kotlikoff (AK) overlapping-generations model is used to examine how changes in marginal income-tax rate structures affect the distribution of income, drawing on actual changes to the U.S. tax code. This approach builds on AK by allowing for many different cohort types, and hence for a nontrivial endogenous distribution of income.

Suggested Citation

  • David E. Altig & Charles T. Carlstrom, 1995. "Marginal tax rates and income inequality: a quantitative-theoretic analysis," Working Papers (Old Series) 9508, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:9508
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    References listed on IDEAS

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    Cited by:

    1. Charles T. Carlstrom & David Altig, 1999. "Marginal Tax Rates and Income Inequality in a Life-Cycle Model," American Economic Review, American Economic Association, vol. 89(5), pages 1197-1215, December.
    2. Fehr, Hans & Ruocco, Anna & Wiegard, Wolfgang, 1997. "Who bears the burden of debt reduction in Italy?," Tübinger Diskussionsbeiträge 105, University of Tübingen, School of Business and Economics.
    3. Steven P. Cassou & Kevin J. Lansing, 1996. "Growth effects of a flat tax," Working Papers (Old Series) 9615, Federal Reserve Bank of Cleveland.

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    Keywords

    Income distribution; Income tax;

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