Bierbrauer, Felix J.; Boyer, Pierre C.; Hansen, Emanuel - In: Econometrica 91 (2023) 3, pp. 1077-1103
We develop a new approach for the identification of Pareto‐improving tax reforms. This approach yields necessary and sufficient conditions for the existence of Pareto‐improving reform directions. A main insight is that “Two brackets are enough”: When the system cannot be improved by...