This paper presents for the first time the properties of optimal piecewise linear tax systems for two-earner households …

household income and consumption by an equivalence scale. We argue that this leads to support for tax/transfer policies that …

business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial …, including private business equity. In a system of simultaneous demand equations in first differences, we identify the tax … effects by an instrumental variables approach exploiting tax reforms during our observation period. To account for selection …