The effects and optimal choice of policy instruments affecting the family (child benefits, taxes on child-specific commodities, etc.) are examined within the context of a household economics model with fertility choice. The simultaneous consideration of child benefits and commodity taxes in the...

The paper studies non-linear income taxation and linear commodity taxation in a household production context with households differentiated by market and non-market ability. In such a setting, there is an efficiency motive for re-distribution which is independent from the usual equity motive,...

The effects and optimal choice of policy instruments affecting the family (child benefits, taxes on child-specific goods, etc.) are examined within the context of a household economics model with fertility choice. The simultaneous consideration of child benefits, and income and commodity taxes...

The paper innovates on the existing optimal taxation literature by taking fertility as endogenous, and allowing for households to be differentiated by their ability to raise children, as well as by their ability to raise income. In a context where the government cannot observe personal...