Optimal redistributive taxation with both extensive and intensive responses

Autor:	Laurence Jacquet, Bruno Van der Linden, Etienne Lehmann
Rok vydání:	2013
Předmět:	Economics and Econometrics Public economics Earnings 05 social sciences Adverse selection Tax basis 8. Economic growth 0502 economics and business Econometrics Economics 050207 economics Monopoly Intensive and extensive properties Nonlinear pricing 050205 econometrics
Zdroj:	Journal of Economic Theory. 148:1770-1805
ISSN:	0022-0531
DOI:	10.1016/j.jet.2013.07.019
Popis:	We study optimal income taxation when labor supply reacts along the intensive and extensive margins. Individuals are heterogeneous across two unobserved dimensions: their skill and disutility of participation. We develop a new method to analytically derive conditions under which optimal marginal tax rates are non-negative everywhere. It is typically optimal to provide a distinct level of transfer to the non-employed and to workers with negligible earnings. Numerical simulations illustrate these properties for the US. We also apply our method to sign output distortions in other adverse selection frameworks with random participation, namely the monopoly nonlinear pricing and the regulatory monopoly problems.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::a7afe02d9175ee1bc5df7033fea33d8a https://doi.org/10.1016/j.jet.2013.07.019 Zobrazit plný text záznamu Full Text from ScienceDirect