Weak redistribution and certainty equivalent domination
Journal article: We assess optimal deterministic nonlinear income taxation in a Mirrlees economy with a continuum of risk‐averse agents whose utilities are quasilinear in labor. A weak redistribution motive makes random taxes more likely socially dominated by the deterministic policy where after‐tax income lotteries are replaced with their certainty equivalents.
Author(s)
Stéphane Gauthier, Guy Laroque
Journal
- Journal of Public Economic Theory
Date of publication
- 2024
Keywords
- Asymmetric information
- Certainty equivalent
- Random taxes
- Redistribution
URL of the HAL notice
Version
- 1
Volume
- 26