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We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring education. Market remuneration of agents depends on both...
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We extend the theory of optimal redistributive taxation to economies with an informal sector. In particular, in our …
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perceptions and preferences for redistribution differ when top earners gain their incomes through luck, routine work, or complex …
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