Data and Code for: Redistributive Capital Taxation Revisited

Principal Investigator(s):  View help for Principal Investigator(s) Ozlem Kina, University of Edinburgh (Scotland); Ctirad Slavik, CERGE-EI; Hakki Yazici, University of Bristol

Version:  View help for Version V1

Name File Type Size Last Modified
  Code for Redistributive Capital Taxation Revisited 06/23/2023 10:08:AM
  Data for Redistributive Capital Taxation Revisited 06/12/2023 10:07:AM
LICENSE.txt text/plain 99 bytes 06/23/2023 05:52:AM
readme.pdf application/pdf 216.8 KB 06/23/2023 05:54:AM

Project Citation: 

Kina, Ozlem, Slavik, Ctirad, and Yazici, Hakki. Data and Code for: Redistributive Capital Taxation Revisited. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-03-01. https://doi.org/10.3886/E184143V1

Project Description

Summary:  View help for Summary
This paper uses a rich quantitative model with endogenous skill acquisition to show that capital-skill complementarity provides a quantitatively significant rationale to tax capital for redistributive governments. The optimal capital income tax rate is 67%, while it is 61% in an identically calibrated model without capital-skill complementarity. The skill premium falls from 1.9 to 1.84 along the transition following the optimal reform in the capital-skill complementarity model, implying substantial indirect redistribution from skilled to unskilled workers. These results show that a redistributive government should take into account capital-skill complementarity when taxing capital.
Funding Sources:  View help for Funding Sources Czech Science Foundation (17-27676S); European Union - Next Generation EU (LX22NPO5101)

Scope of Project

Subject Terms:  View help for Subject Terms capital taxation; capital-skill complementarity; inequality; redistribution
JEL Classification:  View help for JEL Classification
      E25 Aggregate Factor Income Distribution
      J31 Wage Level and Structure; Wage Differentials
Geographic Coverage:  View help for Geographic Coverage USA
Time Period(s):  View help for Time Period(s) 1/1/1967 – 1/1/2023 (Standard macroeconomic data)
Collection Date(s):  View help for Collection Date(s) 12/21/2021 – 1/12/2023; 4/2014 – 4/2014 (Data on labor share)
Universe:  View help for Universe U.S. population
Data Type(s):  View help for Data Type(s) aggregate data; census/enumeration data

Methodology

Data Source:  View help for Data Source
DiCecio, Riccardo. 2023. \Relative Price of Equipment [PERIC]." retrieved from
FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/PERIC,
2023-01-12. For details, see the readme.pdf file in the replication package.

U.S. Bureau of Economic Analysis. 2014. \National Income Accounts."
For details, see the readme.pdf file in the replication package.

U.S. Bureau of Economic Analysis. 2019. \Fixed Asset Tables."
https://www.bea.gov/itable/fixed-assets. Last accessed: 2019-08-08. For details,
see the readme.pdf file in the replication package.

U.S. Bureau of Economic Analysis. 2021. \National Income Accounts."
12-21. For details, see the readme.pdf file in the replication package.

U.S. Bureau of Economic Analysis. 2023. \Real gross domestic product per capita
[A939RX0Q048SBEA]." retrieved from FRED, Federal Reserve Bank of St. Louis;
https://fred.stlouisfed.org/series/A939RX0Q048SBEA, 2023-01-12. For details, see the
readme.pdf file in the replication package.

U.S. Census Bureau. 2021a. \Current Population Survey, 1959 to 1991 Annual Social
and Economic Supplements (CPS ASEC)." https://www.census.gov/data/tables/timeseries/
demo/income-poverty/historical-income-people.html. Last accessed: 2021-12-21.
For details, see the readme.pdf file in the replication package.

U.S. Census Bureau. 2021b. \Current Population Survey, 1992 to 2021 Annual Social
and Economic Supplements (CPS ASEC)." https://www.census.gov/data/tables/timeseries/
demo/income-poverty/historical-income-people.html. Last accessed: 2021-12-21.
For details, see the readme.pdf file in the replication package.

U.S. Office of Management and Budget and Federal Reserve Bank of St.
Louis. 2023. \Federal Debt Held by Private Investors as Percent of Gross Domestic
Product [HBPIGDQ188S]." retrieved from FRED, Federal Reserve Bank of St.
Louis; https://fred.stlouisfed.org/series/HBPIGDQ188S, 2023-01-12. For details, see
the readme.pdf file in the replication package.
Unit(s) of Observation:  View help for Unit(s) of Observation Annual U.S.data
Geographic Unit:  View help for Geographic Unit United States

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V1 [2024-03-01]

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