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Equality of opportunity is a principle of justice that is built on two fundamental ideas. On the one hand, outcome differences across individuals are unacceptable if they are rooted in factors that are beyond individual control. Examples of such circumstance characteristics are the biological...
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In many countries extreme poverty is unnecessary. Yet it persists. We propose a simple index, denoted the Miser index …, to measure the extent to which societies have poverty in the midst of affluence. It builds on the generalized Lorenz … in global miserliness over the last 30 years. -- Miser index ; poverty ; affluence ; inequality ; development …
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Incomplete information is a commitment device for time consistency problems. In the context of time consistent labor income taxation privacy can lead to a Pareto superior outcome and increases the effectiveness of public education as a second best policy.
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We consider the issue of steady-state optimal factor taxation in a Ramsey-type dynamic general equilibrium setting with two distinct distortions: i) taxes on capital and labour are the only available tax instruments for raising revenues, and ii) labour markets are subject to a static...
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I analyze the role of the distribution of skills in shaping optimal nonlinear income tax schedules. I use theoretical skill distributions as well as empirical skill distributions for 14 OECD countries. I find that a more dispersed log-normal skill distribution implies a more progressive optimal...
Persistent link: https://www.econbiz.de/10012887949
I consider the case for the minimum wage alongside (optimal) income taxes when workers differ in both wages and working hours, such that a given level of income corresponds to multiple wage rates. The minimum wage is directly targeted at the lowest-wage workers, while income taxes are at most...
Persistent link: https://www.econbiz.de/10014414309