European Center for Advanced Research in Economics and Statistics

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Title :The Taxation of Couples


Abstract :  This paper studies the tax treatment of couples. We develop two different approaches. One is tailored to the analysis of tax systems that stick to the principle that the tax base for couples is the sum of their incomes. One is tailored to the analysis of reforms toward individual taxation. We study the US federal income tax since the 1960s through the lens of this framework. We find that, in the recent past, realizing efficiency gains requires lowering marginal tax rates for secondary earners. We also find that revenue-neutral reforms towards individual taxation are in the interest of couples with high secondary earnings while couples with low secondary earnings are worse off. The support for such a reform recently passed the majority threshold. It is rejected, however, by a Rawlsian social welfare function. Thus, there is a tension between Rawlsian and Feminist notions of social welfare.

Title : Engineering Commonality

Abstract : Mutual trust, whether it results from shared goals, empathy, a long-lasting relationship, or common priors, is the lubricant that makes organizations and society operable. Besides designing team incentives when feasible, the latter accordingly stress what unites their members and abhor what divides. They regulate acceptable discourse, facilitate team building, spread commonality narratives, and rewrite history. The paper builds a framework in which members of a team are more likely to exert effort if their teammates do (strategic complementarity) and they can trust each other (congruence). They predict congruence on the task based on experiments, for example by exchanging on a variety of otherwise task-irrelevant traits. The paper obtains the optimal communication protocols for the agents and for the organization and asks whether these protocols are robust to misrepresentations and to additional exchange of information. It also studies the organization’s communication about membership and values.

This event is FREE and open to all.  For organizational purposes, please register by February 3 : https://forms.office.com/e/t79MFXe67E