Politiques fiscales optimales pour les bas revenus et principe de compensation

Laurence Jacquet and Dirk Van de gaer

No 2013-04, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: We consider an economy in which agents di¤er in terms of productivity (that may be either high or low) as well as in their preferences for labour. Individuals decide whether or not they enter the labour force. In this context and under asymmetric information, the optimal tax schedules derived under the Egalitarian Equivalence criterion (Fleurbaey et Maniquet [2005, 2006]) always satisfy the compensation principle (for distinct productivity levels). Under the criterion of Roemer [1993, 1998] and the weighted maximin à la Boadway et al. [2002], the optimal tax schedules may satisfy the compensation principle while the standard criteria in the optimal taxation literature fail to do so. Numerical simulations illustrate our analytical results and highlight how the parameters in the model affect the participation tax.

Keywords: optimal taxation; compensation principle; heterogeneous preferences for labour (search for similar items in EconPapers)
JEL-codes: D63 H21 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-acc and nep-cmp
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Related works:
Journal Article: Politiques fiscales optimales pour les bas revenus et principe de compensation (2015)
Working Paper: Politiques fiscales optimales pour les bas revenus et principe de compensation (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2013-04

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