there are externalities as well as internalities from inattention and persistence in consumption across periods. Our optimal …

importance in controlling harmful externalities. I compare the tax and liability here in theory and suggest that the conclusions … harmful externalities, its actual use has been limited, mainly to the domain of pollution. Liability, in contrast, has great …

Is there a way to understand why some global environmental externalities are addressed effectively whereas others are …

externalities. Agents in this model are characterized by an N-dimensional skill vector corresponding to intrinsic abilities in N …. Because externalities change the relative returns to different activities, corrective taxes induce changes in the across …

An influential result in modern optimal tax theory, the Atkinson and Stiglitz (1976) theorem, holds that for a broad … class of utility functions, all redistribution should be carried out through labor income taxation, rather than differential … redistribution in this setting. In fact, the optimal commodity taxes essentially follow the classic “many person Ramsey rule …

The purpose of the present note is to explore the structure of optimal income taxation/redistribution in an economy …, of course, an additional incentive for income redistribution from wealthy to poor citizens is created and the logical …