Homburg, Stefan - In: Public Finance / Finances Publiques 53 (1998) 3/4, pp. 285-295
Mirrlees' optimal income tax formula has never been proven rigorously, and it is hard to understand it in economic terms. We prove an analogous formula for an economy with finitely many persons. This is easy and allows a simple economic interpretation. Thereafter, Mirrlees' original formula is...