Acemoglu, Daron; Golosov, Mikhail; Tsyvinski, Aleh - In: Review of Economic Studies 77 (2010) 3, pp. 841-881
We study the structure of non-linear taxes in a dynamic economy subject to political economy problems. In contrast to existing literature, taxes are set by a self-interested politician, without any commitment power, who is partly controlled by the citizens. We prove that: (1) a version of the...