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Title:Optimal Tax-Transfer-Schemes under Partial Information PDF Logo
Authors:Homburg, Stefan
Lohse, Tim
Issue Date:2004
Series/Report no.:Diskussionspapiere des Fachbereichs Wirtschaftswissenschaften, Universität Hannover 298
Abstract:According to a widely held belief, ?all who are able to work, should work?. We consider this statement within a framework of non-linear taxation. The crucial difference between our model and the standard model is that the government can distinguish between productive persons and the disabled. A general proposition regarding the design of tax-transfer-schemes under such partial information is derived. Moreover, it is shown that unemployment on the side of the productive poor may still be optimal.
Subjects:Optimal Taxation
Document Type:Working Paper
Appears in Collections:Diskussionspapiere, Wirtschaftswissenschaftliche Fakultät, Universität Hannover

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