Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper addresses the issue of optimal taxation in an economy wi th induced internal migration. It extends the Diamond-Mirrlees model, in that households base their decisions on observed quantities, as well as consumer prices, and the work of J. N. Bhagwati and T. N. Srinivasan on the Harris-Todaro model, by considering the costs of raising revenue to pay for policies. It shows how the tax rules and Bhagwati-Srinivasan' s wage subsidy policy have to be modified. It also shows that concern for income distribution does not necessarily counteract a presumption in favor of placing heavy tax burdens on unsuccessful migrants. Copyright 1988 by Royal Economic Society.