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dc.contributor.authorJacquet, Laurenceen_US
dc.contributor.authorLehmann, Etienneen_US
dc.contributor.authorvan der Linden, Brunoen_US
dc.date.accessioned2011-01-27en_US
dc.date.accessioned2011-06-29T11:20:44Z-
dc.date.available2011-06-29T11:20:44Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/46526-
dc.description.abstractWe derive a general optimal income tax formula when individuals respond along both the intensive and extensive margins and when income effects can prevail. Individuals are heterogeneous across two dimensions: their skill and their disutility of participation. Preferences over consumption and work effort can differ with respect to the level of skill, with only the Spence-Mirrlees condition being imposed. Employing a new tax perturbation approach that integrates the nonlinearity of the tax function into the behavioral elasticities, we derive a fairly mild condition for optimal marginal tax rates to be nonnegative everywhere. Numerical simulations using U.S. data confirm the mildness of our conditions. The extensive margin strongly reduces the level of optimal marginal tax rates.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Public Finance 3308en_US
dc.subject.jelH21en_US
dc.subject.jelH23en_US
dc.subject.ddc330en_US
dc.subject.keywordoptimal tax formulaen_US
dc.subject.keywordtax perturbationen_US
dc.subject.keywordrandom participationen_US
dc.subject.stwOptimale Besteuerungen_US
dc.subject.stwEinkommensteueren_US
dc.subject.stwSteuerprogressionen_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwArbeitsangeboten_US
dc.subject.stwTheorieen_US
dc.subject.stwSimulationen_US
dc.subject.stwUSAen_US
dc.titleOptimal redistributive taxation with both extensive and intensive responsesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn644795522en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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