Cremer, Helmuth; Dellis, Arnaud; Pestieau, Pierre - In: Journal of Population Economics 16 (2003) 1, pp. 37-54
This paper studies the role of family size in the design of optimal income taxation. We consider a second best setting where the government observes the number of children and the income of the parents but not their productivity. With a linear tax schedule the marginal tax rate is shown to...