Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper characterizes the optimal income tax function when the agent is risk averse and the objective of the principal is to maximize a social welfare function. We show that the optimal tax function is generally non‐decreasing and concave if the principal's objective is maximin and the agent's utility function satisfies a reasonable condition which we call ‘repetitive risk aversion’. It is shown further that in many cases the optimal tax function is similarly concave when the social welfare function is utilitarian.