The markets for talent often produce large income inequality and therefore raise political attention. While such … inequality can be due to superstar dynamics or factor complementarities, Terviö ("Superstars and Mediocrities: Market Failure in … The Discovery of Talent", the Review of Economic Studies, 2009) first proposed a market failure that was previously …

We develop and estimate a model of jointly optimal income taxes for different types of income. Compared to standard … optimal tax formulas, optimal schedular income tax rates additionally depend on cross-elasticities between tax bases capturing … fiscal externalities. We discuss two applications: the taxation of different income sources such as labor or capital income …

The markets for talent often produce large income inequality and therefore raise political attention. While such … inequality can be due to superstar dynamics or factor complementarities, Terviö ("Superstars and Mediocrities: Market Failure in … The Discovery of Talent", the Review of Economic Studies, 2009) first proposed a market failure that was previously …

-seeking preferences justify heavier taxation of income because this serves to internalise the negative externality that the pursuit of … status imposes on others. In a model where status depends on both income and effort, we show that the optimal corrective tax … function in such a model, and discuss potential implications for optimal income taxation. …

an interest-adjusted income tax is optimal. This tax leaves a riskless component of interest income tax free and taxes … consumption. Both goals are reached. As the resulting tax system divides income into three parts, the tax can also be called a … Triple Income Tax. This distinction and a special tax rate on the excess return are necessary in order to have an optimal …

We develop and estimate a model of jointly optimal income taxes for different types of income. Compared to standard … optimal tax formulas, optimal schedular income tax rates additionally depend on cross-elasticities between tax bases capturing … fiscal externalities. We discuss two applications: the taxation of different income sources such as labor or capital income …