Aronsson, Thomas; Dalin, Torbjörn; Sjögren, Tomas - Institutionen för Nationalekonomi, Umeå Universitet - 2004
This paper concerns redistribution and optimal taxation in an OLG model with two employed ability-types. We assume that the wage rates are determined by bargaining between unions and firms, implying that the equilibrium is characterized by unemployment. The tax instruments are nonlinear taxes on...