Diamond, Peter; Spinnewijn, Johannes - In: American Economic Journal: Economic Policy 3 (2011) 4, pp. 52-76
With heterogeneity in both skills and discount factors, the Atkinson- Stiglitz theorem that savings should not be taxed does not hold. In a model with heterogeneity of preferences at each earnings level, introducing a savings tax on high earners or a savings subsidy on low earners increases...