Misallocation and Productivity under Income Taxation?
2014/08/26
研討會日期 : 2014-08-26
時間 : 14:30
主講人 : Professor Yi-Chan Tsai
主持人 : Professor Pei-Ju Liao
地點 : Conference Room B110
演講者簡介 : Professor Tsai received his Ph.D. in Economics from The Ohio State University in 2010. He is currently an Assistant Professor at National Taiwan University. His research fields are Macroeconomics, Monetary Economics, Computational Economics.
演講摘要 : This paper studies the effects of resource misallocation on aggregate variables. We focus on a one-sector model where the production is carried out by heterogeneous …firms with different productivity that are subject to progressive taxes and entry and exit regulations. Under progressive tax system, a less productive …firm faces a lower tax rate and a more productive …firm faces a higher tax rate, which directs resource from a more productive …firm to a less productive …firm. As low-productivity …firms uses inefficiently high level of resources with the low tax rates, progressive tax reduces overall production and aggregate productivity when the model is abstract from the entry and exit decision. When we consider the entry and exit decisions, the progressive taxes encourages more …firms to enter the market which has positive impacts on measured productivity. The quantitative implication of progressive taxes are therefore sensitive to the introduction of endogenous entry and exit.
