Optimal Redistributive Policy with Endogenous Wages

Luca Micheletto

FinanzArchiv: Public Finance Analysis, 2004, vol. 60, issue 2, 141-159

Abstract: Using the self-selection framework developed by Stiglitz (1982, 1987) and Stern (1982), the paper reconsiders the issue of the desirability of public provision of private goods in a simple two-class economy where wages are endogenous and the policymaker has access to what is commonly known as the mixed tax system, i.e., the tax structure consisting of a nonlinear income tax plus a set of linear commodity taxes.

Keywords: optimal nonlinear income tax; optimal linear commodity taxes; in-kind transfers; endogenous wages (search for similar items in EconPapers)
JEL-codes: H21 H42 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (4)

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