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"In this paper we analyze income tax design in a two member household labor supply model where time spent on consumption together by the two household members is valued differently from time spent apart. We treat consumption as a non excludable public good to members of the household; one example...
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" familial ties (e.g. a nuclear family household) achieve near Pareto efficient allocation of productive resources and Pareto … efficient allocation of consumption while households with "weaker" familial ties (e.g. an extended family household) do not. We …
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