Optimal redistributive taxation with both extensive and intensive responses

• 成果类型: Article
• 署名作者: Jacquet, Laurence; Lehmann, Etienne; Van der Linden, Bruno
• 署名单位: CY Cergy Paris Universite; Universite Paris-Pantheon-Assas; Institut Polytechnique de Paris; ENSAE Paris; Universite Catholique Louvain; Universite Catholique Louvain; Universite Catholique Louvain; Universite Catholique Louvain
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2013.07.019
• 发表日期: 2013
• 页码: 1770-1805
• 关键词: Optimal taxation; Intensive margin; Extensive margin; marginal tax rates; Random participation

摘要

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. (C) 2013 Elsevier Inc. All rights reserved.