I derive the optimal nonlinear income tax when individuals do not necessarily maximize their own well-being. This generates a corrective argument for taxation: optimal marginal taxes are higher (lower) if individuals work too much (too little) from a well-being point of view. I allow for multi-dimensional heterogeneity and derive the optimal tax schedule in terms of measurable sufficient statistics. One of these statistics measures the degree to which individuals fail to optimize their labor supply. I empirically estimate this by using British life satisfaction data as a measure of well-being. I find that low-income workers tend to work 'too little' and high-income workers 'too much,' providing a motive for lower marginal tax rates at the b...
This paper considers the problem of optimal income taxation when individuals are assumed to differ w...
In a model in which agents differ in wages and preferences over labor time–consumption bundles, we s...
This paper is concerned with the optimal use of income information in the design of tax/transfer sys...
I derive the optimal nonlinear income tax when individuals do not necessarily maximize their own wel...
Using numerical calculations we show in the optimal income tax model that a realistic value for the ...
Abstract: The purpose of this paper is to present an exercise where we identify optimal income tax r...
Probably the most enduring result in the theory of optimum income taxation is that, for a sufficient...
The purpose of this paper is to present an exercise where we identify optimal income tax rules under...
We analyze the impact of tax morale on optimal progressive labor income taxation. Only universal bas...
Empirical evidence suggests that an important determinant of subjective well-being is how an individ...
We introduce reference consumption into the standard utility function from optimal tax analysis. Ind...
This paper is concerned with the optimal use of income information in the design of tax/transfer sys...
Existing numerical characterizations of the optimal income tax have been based on a limited number o...
This paper studies optimal non-linear income taxation in an empirically plausible model with labor s...
We study optimal taxation in the general extensive model: the only decision of the participants in t...
This paper considers the problem of optimal income taxation when individuals are assumed to differ w...
In a model in which agents differ in wages and preferences over labor time–consumption bundles, we s...
This paper is concerned with the optimal use of income information in the design of tax/transfer sys...
I derive the optimal nonlinear income tax when individuals do not necessarily maximize their own wel...
Using numerical calculations we show in the optimal income tax model that a realistic value for the ...
Abstract: The purpose of this paper is to present an exercise where we identify optimal income tax r...
Probably the most enduring result in the theory of optimum income taxation is that, for a sufficient...
The purpose of this paper is to present an exercise where we identify optimal income tax rules under...
We analyze the impact of tax morale on optimal progressive labor income taxation. Only universal bas...
Empirical evidence suggests that an important determinant of subjective well-being is how an individ...
We introduce reference consumption into the standard utility function from optimal tax analysis. Ind...
This paper is concerned with the optimal use of income information in the design of tax/transfer sys...
Existing numerical characterizations of the optimal income tax have been based on a limited number o...
This paper studies optimal non-linear income taxation in an empirically plausible model with labor s...
We study optimal taxation in the general extensive model: the only decision of the participants in t...
This paper considers the problem of optimal income taxation when individuals are assumed to differ w...
In a model in which agents differ in wages and preferences over labor time–consumption bundles, we s...
This paper is concerned with the optimal use of income information in the design of tax/transfer sys...