Sommacal, A. (2020).
Flat tax reforms in Italy. Univeristà di Verona.
We calibrate and simulate an heterogeneous agents OLG model to assess the impact of several reforms in which the personal income tax in Italy is replaced by a flat tax possibly complemented with a deduction. We find that a flat tax is welfare improving (according to a utilitarian social welfare function) only for specific subgroups of the population and for low values of the deduction.