Self-Selection, Optimal Income Taxation, and Redistribution
The author makes a pedagogical contribution to optimal income taxation. Using a very simple model adapted from George A. Akerlof (1978), he demonstrates a key result in the approach to public economics and welfare economics pioneered by Nobel laureate James Mirrlees. He shows how incomplete information, in addition to the need to preserve incentives, acts as a limit to a government's redistributive power. The model and technical analysis allow easy handling of three self-selection constraints in a manner that is accessible to students with knowledge of only intermediate microeconomics and elementary algebra. The diagrammatic exposition allows him to present interesting and insightful results.
Volume (Year): 40 (2009)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.tandfonline.com/VECE20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/VECE20|
When requesting a correction, please mention this item's handle: RePEc:taf:jeduce:v:40:y:2009:i:1:p:55-67. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.