000			01331nam a22001577a 4500
999			_c525089 _d525089
008			240209b ||||| |||| 00| 0 eng d
100			_aParodi, Francesca _949796
245			_aTaxation of consumption and labor income: A quantitative approach
260			_aAmerican Economic Journal: Macroeconomics
300			_a15(4), Oct, 2023: p.177-216
520			_aI quantitatively characterize optimal consumption and labor income taxes in a structural life-cycle model of household consumption, saving, and employment choices that allows for irreversibility of durable goods and preference heterogeneity. I find that durables should be subsidized and nondurables should be taxed at a uniform rate. The durable subsidy is driven by the life-cycle features of the model together with durables' irreversibility and borrowing constraints. Uniform taxation on nondurables holds under exogenous and endogenous—fully or weakly separable—labor supply and it relies on homogeneity of intertemporal preferences. Allowing for government's equity concerns, I show that the model rationalizes the tax practice.- Reproduced https://www.aeaweb.org/articles?id=10.1257/mac.20200289
650			_aTaxation, Consumption, Labor income _949797
773			_aAmerican Economic Journal: Macroeconomics
906			_aTAXATION
942			_cAR