Optimal marginal and average income taxation under maximin

A-Tier
Journal: Journal of Economic Theory
Year: 2008
Volume: 143
Issue: 1
Pages: 425-441

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using the Mirrlees optimal income tax model under maximin, we derive fairly mild conditions for a decreasing marginal tax rate throughout the skill distribution with no bunching, a strictly concave tax function in income and a single-peaked average tax schedule. Assuming additive preferences and an isoelastic disutility of labor function, these tax profiles are implied by aggregate skills that are non-decreasing with the skill level. If preferences are quasilinear in leisure or in consumption, these tax profiles are also obtained under a large set of skill distributions.

Technical Details

RePEc Handle
repec:eee:jetheo:v:143:y:2008:i:1:p:425-441
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24