Optimal redistributive taxation in a search equilibrium model
By: by Mathias Hungerbühler ...[et al.]
Contributors: Hungerbühler, Mathias
Series: Discussion paper ;; no. 1460; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1460
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Income tax.; Income distribution.
Description: "This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to their efficient values, gross wages, unemployment and participation are lower. Average tax rates are increasing. Marginal tax rates are positive, even at the top. Finally, numerical simulations suggest that redistribution is much more important in our setting than in a comparable Mirrlees (1971) setting"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 4/27/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.