Optimal Redistribution with Heterogeneous Preferences for Leisure

Autor:	Maurice Marchand, Pierre Pestieau, Maria Racionero, Robin Boadway
Rok vydání:	2002
Předmět:	Microeconomics Economics and Econometrics Government Sociology and Political Science Income tax Comparability optimal income taxation quasi-linear preferences asymmetric information Economics jel:H41 Redistribution (cultural anthropology) Social welfare function Finance jel:H21
Zdroj:	Journal of Public Economic Theory. 4:475-498
ISSN:	1467-9779 1097-3923
DOI:	10.1111/1097-3923.00106
Popis:	This paper examines the properties of the optimal nonlinear income tax when preferences are quasilinear in leisure and heterogeneous. Individuals differ in their ability and in their preferences for leisure. The government seeks to redistribute income. It can perfectly observe the level of endogenous income but cannot observe either ability or preferences. Theheterogeneity of preferences leads to problems of comparability between individual utilities which challenge the design of redistributive schemes. In particular, we analyze the consequences of adopting a utilitarian socialwelfare function where the government is allowed to give different weights to individuals wih different preferences. Under this particular social objective and given the quasilinearity of preferences, we are able to obtain closed-form solutions for the marginal tax rates and to examine the progressivity of the tax system according to the weights used.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::9d76b1bf1a02b975eaf4870a2de254df https://doi.org/10.1111/1097-3923.00106 Zobrazit plný text záznamu Plný text ve formátu PDF