Optimal redistribution when different workers are indistinguishable
Using the standard non linear income and commodity taxation framework this paper examines the optimal policy to be adopted when the same labor disutility can receive two opposite interpretations: taste for leisure and activity limitation. In the absence of complete information about individual characteristics, an income tax does not allow to distinguish lazy from handicapped individuals. One may however rely on a combination of commodity and income taxes to redistribute from the former to the latter when they differ in their preferences for commodities.
Year of publication: |
2003-02
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Authors: | MARCHAND, Maurice ; PESTIEAU, Pierre ; DEL MAR RACIONERO, Maria |
Institutions: | Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain |
Subject: | optimal non-linear taxation | quasi-linear preferences | asymmetric information |
Saved in:
freely available
Extent: | application/pdf |
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Series: | |
Type of publication: | Book / Working Paper |
Notes: | The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE) Number 2003018 |
Classification: | H21 - Efficiency; Optimal Taxation ; H41 - Public Goods |
Source: |
Persistent link: https://www.econbiz.de/10005008667
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