Hub and peryphery, a thought experiment

by the Richmond Fed, which states optimal to move less productive workers out of high-productivity hubs and give them UBI of 17,000$ rather than investing money into peryphery project in order to reduce growing income gapScreenshot 2019-11-11 at 19.07.36

the authors note how CNR or Cognitive non-routine workers are more productive while clustered together so instead of trying to lure them away from hubs where they would become inevitably less productive is better to lure away non CNR from hubs with a subsidy.

This is an economic thought experiment, in a political void, nonetheless there is a clear insight in how to spend development money in the periphery, do not try to create works, just give money away.

https://www.richmondfed.org/-/media/richmondfedorg/publications/research/working_papers/2019/wp19-16.pdf

Tax evasion Eu and Italy

reports and charts

VAT Gap https://ec.europa.eu/taxation_customs/sites/taxation/files/vat-gap-full-report-2019_en.pdf

International tax evasion https://ec.europa.eu/taxation_customs/sites/taxation/files/2019-taxation-papers-76.pdf

Tax evasion Europe with corporate tax estimate https://www.socialistsanddemocrats.eu/sites/default/files/2019-01/the_european_tax_gap_en_190123.pdf

Italian report from MEF (ministry finance) http://www.mef.gov.it/documenti-allegati/2018/A6_-_Relazione_evasione_fiscale_e_contributiva.pdf

Screenshot 2019-10-17 at 12.34.24

The US tax regressivity spat

adding a data point for the top 400 make the curve collapse in 2018, it is a graphic trick but also substantial

they have been fighting on it for days, looks like national accounting is complex and prone to interpretation though sometimes you see economists meddling up waters in this politically charge issue

Being paid in stocks and income inequality

a study argues that 60% of income inequality rise in recent years can be explained withΒ  smart professionals being rewarded in stocks rather than cash, so productivity gains of fast growing companies would accrue to this new kind of “human capitalists” and taken away from the high-skilled labor share, which indeed has been decresing over time

https://marginalrevolution.com/marginalrevolution/2019/07/human-capitalists.html