This paper studies the design of tax systems that implement a planner's second-best allocation in a market economy. An … example shows that the widely used Mirrleesian (1976) tax system cannot implement all incentive-compatible allocations … one tax system. However, this tax system is often undesirable since it severely restricts the choice space of agents in …

We characterize the second-best allocation in a Mirrleesian optimal tax model where agents differ in multiple … dimensions and the planner can tax multiple goods non-linearly. We develop a new method that allows us to solve the partial … properties of the optimum. First, the optimal tax system is described by a multidimensional version of Diamond's (1998) and Saez …

income redistribution and employment creation. In particular, the introduction of both a guaranteed annual income (basic … income) and an employment subsidy are examined, and these policies are compared to a straightforward tax cut for (unskilled …) labour. All initiatives are financed by a tax on capital. In the open-economy setting, capital is perfectly mobile, so there …

We show that the effectiveness of redistribution policy in stimulating the economy and improving welfare is directly … regime counteract the deflationary forces during the recession. Moreover, redistribution produces a Pareto improvement under …

growth enhancing tax and expenditure reform. We quantitatively illustrate that this reform based strategy, by … yet avoids increasing tax rates. With slow consolidation, marginal tax rates are reduced right from the beginning. …

The present study provides estimates of the Effective Marginal Tax Rates (EMTRs) for a sample of 17 OECD countries and …-country/cross-sector approach allows us comparing the incentives provided by the tax systems and gauging the effects of tax changes taking … explicitly into account the possible substitution between factors as well as their tax incidence. Our results suggest that the …

This study examines how tax system design and reform affect labor supply. We conduct an online experiment with 522 … participants to assess labor responses to tax reforms that introduce or remove a notch, affecting after-tax income at either the … lower or upper end of the income distribution. Our findings indicate asymmetric responses to tax reform as well as …

Recent books by Thomas Piketty (Piketty, 2014) and Anthony Atkinson (Atkinson, 2015) have brought the annual wealth tax … back on the policy agenda. Both authors suggest using the annual wealth tax to supplement the redistributional effects of … the income tax, assigning it a role as a redistributional backstop mechanism. However, when measured against annual income …

, the effectiveness of the electricity tariff as a redistribution device is questionable in the presence of a progressive … income tax schedule. To shed light on this controversy, we structurally estimate a model that combines public utility pricing … 2013, including detailed energy consumption and household income and tax payment characteristics. While the theoretical …

This paper investigates the factors that shape governments’ capacity to collect revenue. To do so, it analyses how tax … revenue responds to tax rates using evidence from a panel of 34 OECD countries over 1978-2014. The estimations show that the … response of revenue to rates weakens as rates become higher, confirming the existence of a hump-shaped relationship between tax …