We study optimal redistributive taxes when the population can be disaggregated into tagged groups. Under reasonable circumstances, the tax system will be more redistributive in the tagged group with the higher proportion of high-ability persons. We extend the analysis to the case where the tag...

This paper summarizes the various methodologies for estimating marginal effective tax rates applying to investment decisions. The conceptual framework is developed for several types of investment decisions, including depreciable capital, inventories, and depletable assets. The analysis involves...

The optimal income tax structure is studied in a setting in which workers make discrete labor market decisions and earnings are uncertain. Workers differ continuously along a single dimension that reflects their skills as well as their disutility of work in different jobs. A discrete number of...

This paper studies the role of monitoring as an instrument to improve the redistributive and insurance properties of an optimal tax-transfer system. Workers of different skills can choose to participate in job search or to become voluntarily unemployed. Labour markets exist for jobs of each...