variations in linear budget constraints. This is quite surprising since most income tax systems are nonlinear, generating … that are correct for variations in a linear income tax. Such a procedure leads to incorrect results. The main purpose of … this paper is to show how to correctly calculate the marginal deadweight loss when the income tax is nonlinear. A second …

taxable income, reacts to changes in marginal tax rates. In this study we use a rich panel data set and a sequence of tax … reforms that took place in Sweden during the 1980's to estimate the elasticity of the hourly wage rate with respect to the net-of-tax … rate. While carefully accounting for the endogeneity of marginal tax rates as well as other factors that determine wage …

Using a calibrated overlapping generations model we quantify the welfare gains of an age dependent income tax. Agents … switching from an age-independent to an age-dependent nonlinear tax amounts in our benchmark model to around three percent of … opposed to a linear tax are even larger. Surprisingly, it is of secondary importance to optimally choose the tax on interest …

some other criterion than individuals? preferences. Using the self-selection approach to tax problems developed by Stiglitz … (1982) and Stern (1982), the paper provides a characterization of the properties of an optimal redistributive mixed tax …

aims at redistributing from high- to low-skilled agents by means of an optimal nonlinear labor income tax and a set of … commodity taxes, an optimally designed commodity tax structure should encourage (discourage) the consumption of goods … quantity of a given good/service, this standard commodity tax result needs to be qualified. First, we show that it becomes …

This paper highlights the possibility that negative marginal tax rates arise in an intensive-margin optimal income tax …