Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22410
Authors: 
Homburg, Stefan
Lohse, Tim
Year of Publication: 
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
Employment
Poverty
Welfare
JEL: 
H21
I38
Document Type: 
Working Paper

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