A Contribution to the Theory of Optimal Utilitarian Income Taxation

Publication Type  Preprints
Author  Martin Hellwig
Year of Publication  2007
Issue  2007/02
Abstract  

The paper provides a new formulation of the Mirrlees-Seade theorem on the positivity of the optimal marginal income tax, under weaker assumptions and in a more general model. The formulation of the theorem is independent of whether the model involves finitely many types or a continuous type distribution. The formal argument makes the underlying logic transparent, relating the mathematics to the economics and showing precisely how each assumption enters the analysis.

Pagination  60
Publisher  Max Planck Institute for Research on Collective Goods
Place Published  Bonn
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Published in:  Journal of Public Economics, vol. 91, pp. 1449-1477, 2007
Supplementary Material  
Keywords  Utilitarian Welfare Maximization, Redistribution, Optimal Income Taxation
JEL-Codes  H21, D63