are not. When governments maximize tax revenues, we show that overconfidence unambiguously reduces the bonus tax rate that … overconfidence is increased. …

are not. In this setting we show that overconfidence (i) unambiguously increases the bonus component in the managers … overconfidence can contribute to explaining both the increasing role of bonus contracts and the fall in marginal tax rates for high …

are not. When governments maximize tax revenues, we show that overconfidence unambiguously reduces the bonus tax rate that … overconfidence is increased. …

margin. The skill distribution is continuous, and, for each skill level, the distribution of migration cost is also … migration is decreasing in the skill level. When the semi-elasticity of migration is increasing in the skill level, either … negative. Numerical simulations are calibrated using plausible values of the semi-elasticity of migration for top income …

migration costs, which are continuously distributed. We derive the optimal marginal income tax rates at the equilibrium …, extending the Diamond-Saez formula. The theory and numerical simulations on the US case show that the level and the slope of the … semi-elasticity of migration on which we lack empirical evidence are crucial to derive the shape of optimal marginal income …

Empirical evidence suggests that managerial overconfidence and government guarantees contribute substantially to … excessive risk-taking in the banking industry. This paper incorporates managerial overconfidence and limited bank liability into … overestimates the returns to effort and risk. We find that managerial overconfidence necessitates an intervention into banker pay …