Berliant, Marcus; Ledyard, John - Volkswirtschaftliche Fakultät, … - 2011
We wish to study optimal dynamic nonlinear income taxes. Do real world taxes share some of their features? What policy … the two periods, so income cannot be transferred between periods. Labor supply in both periods is chosen by the consumers …. The government has memory, so taxes in the first period are a function of first period labor income, whereas taxes in the …