Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/286325 
Erscheinungsjahr: 
2022
Schriftenreihe/Nr.: 
IES Working Paper No. 29/2022
Verlag: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Zusammenfassung: 
We provide the first estimate of the elasticity of marginal utility of consumption, μ, for Europe and for thirty individual European countries, using the income-tax individual-level data. Specifically, we rely on the absolute equal-sacrifice approach and CRRA utility function to elicit the revealed preferences of income tax payers on their acceptance of the tax schedule. Our central estimate of μ equals to 1.42. With few exceptional cases, μ's for European countries exceed unity, ranging between 1.2 and 1.90. We further discuss the implications of our estimate of μ for the social discount rate and Social Cost of Carbon. We conclude that the social discount rate might be slightly higher than traditionally assumed, implying lower magnitude of Social Cost of Carbon, at least for Europe.
Schlagwörter: 
elasticity of marginal utility of consumption
equal-sacrifice approach
income tax schedules
marginal tax rate
social discount rate
JEL: 
D60
D61
H24
R13
Dokumentart: 
Working Paper

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