Jacobs, Bas; Schindler, Dirk - Fachbereich Wirtschaftswissenschaften, Universität Konstanz - 2012
This paper analyzes optimal linear taxes on labor income and savings in a two-period life cycle model with ex ante identical households, endogenous leisure demands in both periods, and general processes of skill shocks over the life cycle. We demonstrate that the Atkinson-Stiglitz theorem breaks...