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Given its significance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper offers a simple and transparent analysis of its main characteristic...
We use micro data from the U.S. Internal Revenue Service to document how households' tax liabilities vary with income, marital status and the number of dependents. We report facts on the distributions...
Privacy, time consistent optimal labor income taxation and education policy
Privacy commitment time consistent income taxation
2013/10/17
Incomplete information is a commitment device for time consistency problems. In the contextof time consistent labor income taxation privacy can lead to a Pareto superior outcome and increases the effe...