Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
Optimal Labor Income Taxation under Maximin: An Upper Bound.
Abstract: This paper assumes the standard optimal income tax model
of Mirrlees (Review of Economic Studies, 1971). It gives fairly mild
conditions under which the optimal nonlinear labor income tax profile
derived under maximin has higher marginal tax rates than the ones derived
with welfarist criteria that sum over the population any concave
transformation of individual utilities. This strict dominance result is
always valid close to the bounds of the skill distribution and almost
everywhere (except at the upper bound) when quasilinear-in-consumption
preferences are assumed.
Keywords: Optimal income taxation; maximin.; (follow links to similar papers)
JEL-Codes: H21; (follow links to similar papers)
9 pages, February 2, 2010
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
DWSDownload.aspx?File=%2f ... on+papers%2f2010%2f05.pdf
Questions (including download problems) about the papers in this series should be directed to Dagny Hanne Kristiansen ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom