Blomquist, Sören; Christiansen, Vidar - In: FinanzArchiv: Public Finance Analysis 64 (2008) 2, pp. 218-244
Nonlinear income taxes and linear commodity taxes are analyzed when people differ with respect to ability, high-skill agents have heterogeneous preferences, and neither individual abilities nor preferences are observable. We characterize pure income tax optima, which may be bunching or...