This paper contributes to the debate about the optimal design of tax-transfer systems. Based on the theory of optimal … taxation, combined with microsimulation and microeconometric techniques we derive the welfare function which makes the current … German tax and transfer system for single women optimal. Furthermore, we compare the welfare function conditional on the …

lifetime earnings risk. Based on a dynamic life-cycle model, we find that redistribution through the tax-and -transfer system …In this paper, we study how the tax-and-transfer system reduces the inequality of lifetime income by redistributing … insurance effects of taxation may be improved by moving to a progressive tax on lifetime earnings. Similarly, the lifetime …