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 …

. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring …

In this paper we allude to a novel role played by the non-linear income tax system in the presence of adverse selection … tax schedule enables the government to affect the wage distribution by controlling the transmission of information in the …

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

-in-advance constraint. It shows that tax policy cannot fully replicate or neutralize the redistributive implications of monetary policy … hold even in the presence of a general income tax and preferences that are separable in labor supply and goods. If …