This paper examines the properties of the optimal nonlinear income tax when preferences are quasilinear in leisure and heterogeneous. Individuals differ in their ability and in their preferences for leisure. The government seeks to redistribute income. It can perfectly observe the level of...

Tax evasion is typically analyzed in a principal/agent framework,the government (principal)trying to provide agents with the incentives to pay their taxes. However,evading sales,excise or trade taxes requires the cooperation of at least two taxpayers.When individuals evade taxes,they face two...

This paper examines the properties of the optimal nonlinear income tax when preferences are quasilinear in leisure and heterogeneous. Individuals differ in their ability and in their preferences for leisure. The government seeks to redistribute income. It can perfectly observe the level of...

We study federal economies in which regional governments have responsibility for delivering public services and redistributive objectives apply. The implications of these for the assignment of revenue-raising instruments and fiscal transfers, both vertical and horizontal, are considered. Models...

The literature on the use of Differencial commodity taxes/subsidies and that on quantity controls to supplement income taxation have developed separately from each other. The purpose of this paper is to combine these 2 strands in the standard framework of optimal non-linear income taxation.