Recent research has shown that small deviations from optimizing behavior can have substantial effects on economic equilibria. Nonoptimizing demand behavior is of particular importance since individual consumer expenditure data often violate the strong axiom of revealed preference, and since the...

This paper studies the form of the tax equilibrium set in simple Diamond-Mirrlees models and characterizes the corresponding Laffer curves. The curves need not ever slope downward and can have multiple local maxima. Local information about them is thus not sufficient to place restrictions on...