Weak redistribution and certainty equivalent domination

We assess optimal deterministic nonlinear income taxation in a Mirrlees economy with a continuum of risk‐averse agents whose utilities are quasilinear in labor. A weak redistribution motive makes random taxes more likely socially dominated by the deterministic policy where after‐tax income lotteries...

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Veröffentlicht in:Journal of public economic theory 2024-06, Vol.26 (3), p.n/a
Hauptverfasser: Gauthier, Stéphane, Laroque, Guy
Format: Artikel
Sprache:eng
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Zusammenfassung:We assess optimal deterministic nonlinear income taxation in a Mirrlees economy with a continuum of risk‐averse agents whose utilities are quasilinear in labor. A weak redistribution motive makes random taxes more likely socially dominated by the deterministic policy where after‐tax income lotteries are replaced with their certainty equivalents.
ISSN:1097-3923
1467-9779
DOI:10.1111/jpet.12703