Arbeitspapier

Optimal random taxation and redistribution

We assess the usefulness of stochastic redistribution among a continuum of risk-averse agents with quasilinear utilities in labor. Agents differ according to their consumption tastes, which remain private information. We identify circumstances where stochastic redistribution is socially dominated by the deterministic policy where after-tax income lotteries are replaced with their certainty equivalent. We also provide a parametric example where feasible and incentive compatible lotteries locally dominate the optimal deterministic menu. In this example the downward pattern of incentives prevailing in the deterministic case is reversed to an upward pattern in the stochastic case.

Sprache
Englisch

Erschienen in
Series: IFS Working Papers ; No. 22/35

Klassifikation
Wirtschaft
Optimization Techniques; Programming Models; Dynamic Analysis
Asymmetric and Private Information; Mechanism Design
Economics of Contract: Theory
Taxation and Subsidies: Efficiency; Optimal Taxation
Thema
redistribution
asymmetric information
random taxes
certainty equivalent

Ereignis
Geistige Schöpfung
(wer)
Gauthier, Stéphane
Laroque, Guy
Ereignis
Veröffentlichung
(wer)
Institute for Fiscal Studies (IFS)
(wo)
London
(wann)
2022

DOI
doi:10.1920/wp.ifs.2022.3522
Handle
Letzte Aktualisierung
10.03.2025, 11:46 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Gauthier, Stéphane
  • Laroque, Guy
  • Institute for Fiscal Studies (IFS)

Entstanden

  • 2022

Ähnliche Objekte (12)