Recent microeconometric studies of taxpayer’ responsiveness to taxation have shown that intensive margin labor supply … estimate the taxable income elasticity at a very large kink point of the Swedish tax schedule using the bunching method. During … bounds on the long-run elasticity than previous studies. If wage earners on average tolerate 1% of their disposable income in …

This paper reviews the literature on optimal taxation of labour income and the empirical work on labour supply and the … elasticity of taxable income in Sweden. It also presents an overview of Swedish taxation of labour income, offers calculations on … the development in effective marginal tax rates and participation tax rates, and estimates, using the difference …

. Hammond’s (1979) “principle of taxation” proves that any incentive-compatible allocation can be implemented through at least …

-household heterogeneity in second earner labour supply, and of the resulting relationship between household income and the wellbeing of … widens the set of cases in which individual taxation is welfare-superior. …

This paper extends the Mirrlees (1971) model of optimal non-linear income taxation with a monitoring technology that … implemented. Monitoring of labor effort reduces the distortions created by income taxation and raises optimal marginal tax rates …, which increases if individuals earn a lower income (provide less work effort) or have a higher earning ability. We analyze …

The present paper quantifies the economic consequences of eliminating the system of income splitting in Germany. We … and homework facing income and lifespan risk. The numerical exercise computes the resulting welfare changes across … households and isolates aggregate efficiency effects of a move towards either individual taxation or family splitting.Our results …

capital incomes. After spelling out this contrast and reviewing (and rejecting) zero taxation of capital income based on the … mandatory pensions. Conversely, optimizing models of pension design typically do not include annual taxation of labor and …

’s skill composition. A proportional labour income tax induces too many workers with high innate ability to choose an …

variations in linear budget constraints. This is quite surprising since most income tax systems are nonlinear, generating … variations in nonlinear income taxes a common procedure has been to linearize the nonlinear budget constraint and apply methods … nonlinear budget constraints. Instead of developing the proper procedure to calculate the marginal deadweight loss for …

We formulate an optimum-taxation model, where parents leave bequests to their descendants for altruistic reasons. In …