JOURNAL ARTICLE

FBBVA Lecture 2023. The Importance of Modeling Income Taxes over Time: U.S. Reforms and Outcomes.

  • Published In: Journal of the European Economic Association, 2023, v. 21, n. 6. P. 2237 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Borella, Margherita; Nardi, Mariacristina De; Pak, Michael; Russo, Nicolo; Yang, Fang 3 of 3

Abstract

This article focuses on the evolution of U.S. federal income tax reform from 1969 to 2016, estimating effective federal income tax functions for a representative decision unit, married couples, and singles using data from the Panel Study of Income Dynamics (PSID). It documents substantial variation over time and across household types in average and marginal tax rates as well as income tax progressivity, linking these changes to major tax reforms and economic conditions. Employing a detailed dynamic structural model of labor supply and savings for couples and singles, the study demonstrates that different tax regimes significantly influence labor market participation, hours worked, labor income, and savings behavior. The findings highlight the importance of accounting for time variation and household composition in tax policy analysis and structural economic modeling.

Additional Information

  • Source:Journal of the European Economic Association. 2023/12, Vol. 21, Issue 6, p2237
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2023
  • ISSN:1542-4766
  • DOI:10.1093/jeea/jvad053
  • Accession Number:174158883
  • Copyright Statement:Copyright of Journal of the European Economic Association is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.