We use a behavioural microsimulation model embedded in a numerical optimization procedure in order to identify optimal (social welfare maximizing) tax-transfer rules. We consider the class of tax-transfer rules consisting of a universal basic income and a tax defined by a 4th degree polynomial....

This paper, intended for researchers, introduces a stochastic method for calculating the optimal tax schedule based on taxpayer utility, population skill distribution, and wages. It implements and extends the classic approach to optimal income tax calculation introduced by J.A. Mirrlees. A...

When should you harvest a tax loss? Tax-loss harvesting is a strategy used to improve the net of tax returns of a portfolio, where an investor deliberately sells assets that have incurred a loss in order to use these losses to offset current or future capital gains. However, an important...

As a response to a changing labour market scenario and to the concerns for increasing costs and bad incentives of traditional income support policies, the last decades have witnessed, in many countries, reforms introducing more sophisticated designs of means-testing, eligibility and tagging. In...

Should automation be regulated? This paper studies optimal tax of robot and regulation of automation. A job assignment model is embedded into a Mirrleesian tax problem. A task may either be assigned to the robot or one type of labors, which naturally determines the automation rate. The robot can...

In a less widely known contribution, Béla Martos (1966, Hungarian Academy of Sciences) introduced a generalized notion of concavity that is closely related to what is nowadays known as r-concavity in the operations research literature, and that is identical to what is nowadays known as...