IDEAS home Printed from https://ideas.repec.org/p/sef/csefwp/66.html
   My bibliography  Save this paper

Risk Sharing and the Tax System

Author

Listed:

Abstract

Several papers have documented that US consumers can not fully insure themselves against all their idiosyncratic risks, but little is understood about which mechanisms provide insurance. We investigate whether, as some suggest, progressive taxes provide additional insurance. The methodology distinguishes insurance from redistribution, and can by applied to testing any potential insurance mechanism. Using repeated cross-sections from the US consumer expenditure survey (CEX), we relate changes in consumption inequality to several measures of tax progressivity. Identification exploits the variation in taxes both across states and over time. Our results suggest, under weak assumptions, that progressive taxes do not induce insurance, while stronger assumptions quantify this effect.

Suggested Citation

  • Charles Grant & Mario Padula, 2001. "Risk Sharing and the Tax System," CSEF Working Papers 66, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  • Handle: RePEc:sef:csefwp:66
    as

    Download full text from publisher

    File URL: http://www.csef.it/WP/wp66.pdf
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:66. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lia Ambrosio). General contact details of provider: http://edirc.repec.org/data/cssalit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.