How optimal nonlinear income taxes change when the distribution of the population changes

• 成果类型: Article
• 署名作者: Brett, Craig; Weymark, John A.
• 署名单位: Vanderbilt University; Mount Allison University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2010.05.007
• 发表日期: 2011
• 页码: 1239-1247
• 关键词: Asymmetric information; comparative statics; Optimal income taxation

摘要

The impacts of changing the number of individuals of a particular skill level on the solutions to two versions of the finite population optimal nonlinear income tax problem are investigated. In one version, preferences are quasilinear in leisure. For this version, it is shown that it is possible to sign the directions of,change in everyone's optimal consumptions and optimal marginal tax rates. In the other version, preferences are quasilinear in consumption. For this version, it is shown that it is possible to sign the directions of change in everyone's optimal before-tax incomes and optimal marginal tax rates. Moreover, the directions of change in the optimal marginal tax rates are the same for the two specifications of preferences. (C) 2010 Elsevier B.V. All rights reserved.