Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/85271
Authors: 
Corneo, Giacomo
Year of Publication: 
2011
Series/Report no.: 
Discussion Paper, School of Business & Economics: Economics 2011/16
Abstract: 
An unduly neglected implication of the choice of the tax unit is its impact on the consumption risk carried by taxpayers. As compared to individual taxation, joint taxation with income splitting provides couples with more insurance against the risk of earning inability for one of the spouses. If that risk is not insurable in markets, replacing individual taxation with joint taxation with income splitting can generate a Pareto-improvement.
Subjects: 
progressive income tax
tax unit
insurance
JEL: 
H2
Document Type: 
Working Paper

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