This Handbook entry presents a conceptual, normative overview of the subject of taxation. It emphasizes the relationships among the main functions of taxation--notably, raising revenue, redistributing income, and correcting externalities--and the mapping between these functions and various forms...

Im Vorfeld der Bundestagswahl 2013 findet in Deutschland eine intensive Debatte über die Umverteilungswirkung der Einkommensteuer statt. Insbesondere mit der Senkung des Spitzensteuersatzes auf zwischenzeitlich 42 und nun 45 Prozent wird eine überproportionale Bevorzugung hoher Einkommen...

Extensive research has shown that few robust results regarding the optimal tax structure are available. Moreover, the stylised models used in optimal tax analyses are not appropriate for practical policy advice. This paper proposes a method of examining optimal marginal income tax reforms using...

A large body of literature is devoted to the measurement of income inequality, yet little attention is given to the question, Why measure inequality? However, the reasons for measurement bear importantly on whether and how measurement should be done. Upon examination, normative measures are...

This paper uses a partial equilibrium framework to evaluate the relative efficiency, distributional and revenue implications of rice tariffs and targeted transfers in Madagascar, especially in the context of identifying their respective roles for poverty alleviation. Although there are likely to...

Lucas (2004) asserts that "Of the tendencies that are harmful to sound economics, the most seductive, and in my opinion the most poisonous, is to focus on questions of distribution... The potential for improving the lives of poor people by finding different ways of distributing current...