KOTHENBÜRGER, MARKO; POUTVAARA, PANU - In: Economica 73 (2006) 290, pp. 299-319
We propose a Pareto-improving policy which reduces the overall wage tax burden in an economy with intergenerational trade in a fixed factor of production, here labelled as land. We analyse a second-best environment in which the government cannot resort to non-distortionary land taxes. Reducing...