EconPapers    
Economics at your fingertips  
 

An Axiomatic Proof of Mirrlees' Formula

Stefan Homburg

Public Finance = Finances publiques, 1998, vol. 53, issue 3-4, 285-95

Abstract: Mirrlees' optimal income tax formula has never been proven rigorously, and it is hard to understand it in economic terms. We prove an analogous formula for an economy with finitely many persons. This is easy and allows a simple economic interpretation. Thereafter, Mirrlees' original formula is derived by means of a limit theorem. The analysis also clarifies the discussion between Revesz and Saez published as "Communications" below in this issue of PF/FP. It shows which formula is correct and how the methodological problems, in particular the circularity problem, can be dealt with.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: An Axiomatic Proof of Mirrlees' Formula (1998) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pfi:pubfin:v:53:y:1998:i:3-4:p:285-95

Access Statistics for this article

More articles in Public Finance = Finances publiques
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2021-05-28
Handle: RePEc:pfi:pubfin:v:53:y:1998:i:3-4:p:285-95