Optimal Taxation: Merging Micro and Macro Approaches

Mikhail Golosov, Maxim Troshkin and Aleh Tsyvinski

Journal of Money, Credit and Banking, 2011, vol. 43, issue s1, 147-174

Abstract: This paper argues that the large body of research that follows Mirrlees approach to optimal taxation has been developing in two directions, referred to as the micro and macro literatures. We review the two literatures and argue that both deliver important insights that are often complementary to each other. We argue that merging the micro and macro approaches can prove beneficial to our understanding of the nature of efficient redistribution and social insurance and can deliver implementable policy recommendations.

Date: 2011
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https://doi.org/10.1111/j.1538-4616.2011.00413.x

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Journal Article: Optimal Taxation: Merging Micro and Macro Approaches (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:43:y:2011:i:s1:p:147-174

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