The paper studies non-linear income taxation and linear commodity taxation in a household production context with households differentiated by market and non-market ability. In such a setting, there is an efficiency motive for re-distribution which is independent from the usual equity motive,...

The paper innovates on the existing optimal taxation literature by taking fertility as endogenous, and allowing for households to be differentiated by their ability to raise children, as well as by their ability to raise income. In a context where the government cannot observe personal...

Using a household production model of educational choices, we characterise a free market situation in which some agents (high wagers) educate their children full-time and spend a sizable amount of resources on them, while others (low wagers) educate them only partially. The free-market...