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...

We propose a Pareto-improving policy which reduces the overall wage taxburden in an economy with intergenerational trade in a fixed factor ofproduction, here labelled as land. We analyse a second-best environmentin which the government cannot resort to non-distortionary land taxes.Reducing the...