A Contribution to the Theory of Optimal Utilitarian Income Taxation

Martin Hellwig

No 2007_2, Discussion Paper Series of the Max Planck Institute for Research on Collective Goods from Max Planck Institute for Research on Collective Goods

Abstract: The paper provides a new formulation of the Mirrlees-Seade theorem on the positivity of the optimal marginal income tax, under weaker assumptions and in a more general model. The formulation of the theorem is independent of whether the model involves finitely many types or a continuous type distribution. The formal argument makes the underlying logic transparent, relating the mathematics to the economics and showing precisely how each assumption enters the analysis.

Keywords: Optimal Income Taxation; Utilitarian Welfare Maximization; Redistribution (search for similar items in EconPapers)
JEL-codes: D63 H21 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2007-02
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (72)

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Related works:
Journal Article: A contribution to the theory of optimal utilitarian income taxation (2007)
Working Paper: A Contribution to the Theory of Optimal Utilitarian Income Taxation (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:mpg:wpaper:2007_2

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