Optimal Income Taxation and Disability Insurance for Households with Intra-Household Care

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Kyung-woo Lee
• 간행물 정보: 『한국재정학회 학술대회 논문집』2017년도 추계학술대회 논문집, 1~35쪽, 전체 35쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2017.09.30

영문 초록

This paper characterizes the optimal income tax and disability insurance (DI) in the presence of formal and informal care for disabled people provided within households. In the model, each household is comprised of a disabled member and an able member who can provide “intra-household care” for the disabled member. Moreover, both the ability of able members and the level of disability of disabled members are heterogeneous across households. I …rst show that the intra-household care increases labor supply of disabled agents by reducing negative e¤ects of disability on their labor supply. I also …nd that under reasonable assumptions optimal DI bene…ts are positive and progressive with respect to household earnings. Both features can be interpreted as redistribution mechanisms: positivity as the redistribution from the mildly disabled to the severely disabled, and progressivity as the redistribution from the more productive to the less productive.

목차

1 Introduction

2 Model

3 Optimal behavior of households

4 Optimal tax and DI bene…ts for households

5 Validity of key assumptions

6 Concluding remarks