Jessen, Robin; Metzing, Maria; Rostam-Afschar, Davud - 2017
A common assumption in the optimal taxation literature is that the social planner maximizes a welfarist social welfare … function with weights decreasing with income. However, high transfer withdrawal rates in many countries imply very low weights … for the working poor in practice. We reconcile this puzzle by generalizing the optimal taxation framework by Saez (2002 …
