In this paper we examine the properties of the optimal linear estate tax in the presence of a complete set of tax instruments available to the social planner. We allow for both types of bequest motives, namely altruistic and accidential. We examine the case for estate taxation which seem to be...

Minimum wage legislation is a standard policy tool in most countries. However, the overall merits of minimum wage are controversial due to its potential adverse effects on unemployment. In this paper we construct a simple model in which minimum wage plays an important re-distributive role,...

We illustrate a novel informational feature of education, which the government may utilize. Discretionary decisions of individuals to acquire education may serve as an additional signal (to earned labor income) on the underlying unobserved innate earning ability, thereby mitigating the...