Weak redistribution and certainty equivalent domination

Article dans une revue: 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.

Auteur(s)

Stéphane Gauthier, Guy Laroque

Revue
  • Journal of Public Economic Theory
Date de publication
  • 2024
Mots-clés
  • Asymmetric information
  • Certainty equivalent
  • Random taxes
  • Redistribution
Pages
  • e12703
Version
  • 1
Volume
  • 26