Kroft, Kory; Kucko, Kavan; Lehmann, Etienne; Schmieder, … - 2016
We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous … the macro employment response to taxation and the micro and macro participation responses. We estimate these statistics … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …