We develop and estimate a model of jointly optimal income taxes for different types of income. Compared to standard … optimal tax formulas, optimal schedular income tax rates additionally depend on cross-elasticities between tax bases capturing … fiscal externalities. We discuss two applications: the taxation of different income sources such as labor or capital income …

proportion of income) also decline by almost the same amount, suggesting shared understanding that is characteristic of social …

This paper studies the market and welfare effects of income heterogeneity in monopolistically competitive product … sensitive to price change compared to poorer ones’, a mean-preserving contraction of income distribution entices firms to charge … poorer individuals and, in specific circumstances, on the whole population. In an open economy with free trade, lower income …