|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/39037
|
| | |
| Title: | | A comparison of optimal tax policies when compensation or responsibility matter  |
| Authors: | | Jacquet, Laurence van de Gaer, Dirk |
| Issue Date: | | 2010 |
| Series/Report no.: | | CESifo working paper Public Finance 2997 |
| Abstract: | | This paper examines optimal redistribution in a model with high- and low-skilled individuals with heterogeneous tastes for labor. We compare the extent to which optimal policies based on different normative criteria obey the principles of compensation (for differential skills) and responsibility (for preferences for labor) when labor supply is along the extensive margin. With heterogeneity in skills and preferences, traditional Welfarist criteria including Utilitarianism present unappealing policy recommendations in some scenarios as they fail to take compensation and responsibility issues into account. Criteria from the social choice literature perform better in this regard in first-and second-best. More importantly, these equality of opportunity criteria push the second-best policy away from an Earned Income Tax Credit and in the direction of a Negative Income Tax. |
| Subjects: | | optimal income taxation equality of opportunity heterogeneous preferences for labor |
| JEL: | | H21 D63 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/39037
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|