TY  - UNPD
A1  - Grant, Charles
A1  - Koulovatianos, Christos
A1  - Michaelides, Alexander
A1  - Padula, Mario
T1  - Evidence on the insurance effect of marginal income taxes
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,06
N2  - Marginal income taxes may have an insurance effect by decreasing the effective fluctuations of after-tax individual income. By compressing the idiosyncratic component o personal income fluctuations, higher marginal taxes should be negatively correlated with the dispersion of consumption across households, a necessary implication of an insurance effect of taxation. Our study empirically examines this negative correlation, exploiting the ample variation of state taxes across US states. We show that taxes are negatively correlated with the consumption dispersion of the within-state distribution of non-durable consumption and that this correlation is robust.
T3  - CFS working paper series - 2008, 06 
KW  - Undiversifiable Earnings Risk
KW  - Consumption Insurance
KW  - Tax Distortions
KW  - Einkommensteuer
KW  - Steuersatz
Y1  - 2008
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/225
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-53239
VL  - 37
IS  - February 1, 2008
ER  -