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Privacy, Time Consistent Optimal Labor Income Taxation and Education Policy

Konrad, Kai A. - 2011

Incomplete information is a commitment device for time consistency problems. In the context of time consistent labor income taxation privacy can lead to a Pareto superior outcome and increases the effectiveness of public education as a second best policy

Persistent link: https://www.econbiz.de/10014163655

Optimal Taxation with Multiple Incomes and Types

Spiritus, Kevin; Lehmann, Etienne; Renes, Sander; … - 2022

We analyze the optimal nonlinear income tax schedule when taxpayers earn multiple incomes and differ along many unobserved dimensions. We derive the necessary conditions for the government s optimum using both a tax perturbation and a mechanism design approach, and show that both methods produce...

Persistent link: https://www.econbiz.de/10014083899

Optimal Redistributive Taxation with Both Extensive and Intensive Responses

Jacquet, Laurence - 2010

This paper characterizes optimal income taxation when individuals respond along both the intensive and extensive margins. Individuals are heterogeneous across two dimensions: specifically, their skill and disutility of participation. Preferences over consumption and work effort can differ with...

Persistent link: https://www.econbiz.de/10013146460

A Simple Theory of Optimal Redistributive Taxation with Equilibrium Unemployment

Hungerbühler, Mathias - 2010

We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model, agents are endowed with different skill levels and labor markets are perfectly segmented by skill. The government only observes negotiated wages. More progressive taxation leads to...

Persistent link: https://www.econbiz.de/10013146465

On the Optimality of a Minimum Wage : New Insights from Optimal Tax Theory

Hungerbühler, Mathias - 2007

We build a theoretical model to study whether a minimum wage can be welfare-improving if it is implemented in conjunction with an optimized nonlinear income tax. We consider this issue in a framework where search frictions on the labor market generate unemployment. Workers differ in...

Persistent link: https://www.econbiz.de/10012776136

Redistribution and Insurance with Simple Tax Instruments

Findeisen, Sebastian - 2015

We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is independent of the social welfare function and...

Persistent link: https://www.econbiz.de/10013016371

Education and Optimal Dynamic Taxation

Findeisen, Sebastian - 2011

We study optimal tax and educational policies in a dynamic private information economy, in which ex-ante heterogeneous individuals make an educational investment early in their life and face a stochastic wage distribution. We characterize labor and education wedges in this setting analytically...

Persistent link: https://www.econbiz.de/10013118777

How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country

Cigno, Alessandro - 2011

As credit and insurance markets are imperfect, and given that intra-family transfers, and the way a child uses her time outside school hours, are private information, the second-best policy makes school enrollment compulsory, forces overt child labour below its efficient level (if positive), and...

Persistent link: https://www.econbiz.de/10013126131

Biofuel Subsidies : An Open-Economy Analysis

Bandyopadhyay, Subhayu - 2013

, when a Pigouvian tax on conventional fuels such as crude is in place, the optimal biofuel subsidy is zero. When the tax on … crude is not available as a policy option, however, a second-best biofuel subsidy (or tax) is optimal. In the large …-country case, the optimal tax on crude departs from its standard Pigouvian level and a biofuel subsidy is optimal. A biofuel …

Persistent link: https://www.econbiz.de/10013095320

The Optimal Graduated Minimum Wage and Social Welfare

Danziger, Eliav - 2018

This paper analyzes the effects of introducing a graduated minimum wage in a model with optimal in-come taxation in which a government seeks to maximize social welfare. It shows that the optimal graduated minimum wage increases social welfare by increasing the lowproductivity workers'...

Persistent link: https://www.econbiz.de/10012923241