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The optimal income tax when poverty is a public"bad" Author info | Abstract | Publisher info | Download info | Related research | Statistics Wane, Waly
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The author considers poverty as an aggregate negative externality that affects people in different ways, depending on their aversion to poverty. If society is on average averse to poverty, then the optimal income tax schedule displays negative marginal tax rates, at least for less skilled individuals. Negative marginal tax rates play the role of a Pigouvian earnings subsidy, fostering the supply of poor individuals to provide labor. The result of no distortion at the endpoints, which is therefore violated, can be restored once the focus is shifted from individual to social distortions.
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number
2270.
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Date of creation: 31 Jan 2000Date of revision:
Handle: RePEc:wbk:wbrwps:2270Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433 Email: Web page: http://www.worldbank.org/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Roula I. Yazigi).
Keywords: Environmental Economics&Policies ; Economic Theory&Research ; Health Economics&Finance ; Achieving Shared Growth ; Safety Nets and Transfers ; Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Guesnerie, Roger & Laffont, Jean-Jacques, 1984.
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Lollivier, Stefan & Rochet, Jean-Charles, 1983.
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Ebert, Udo, 1992.
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Seade, Jesus, 1979.
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The Warwick Economics Research Paper Series (TWERPS)
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[Downloadable!]
Mirrlees, James A, 1971.
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Eissa, Nada & Liebman, Jeffrey B, 1996.
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Other versions: Bourguignon, Francois & Fields, Gary, 1997.
"Discontinuous losses from poverty, generalized P[alpha] measures, and optimal transfers to the poor ,"
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Besley, Timothy & Coate, Stephen, 1995.
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Other versions: Sadka, Efraim, 1976.
"Social Welfare and Income Distribution ,"
Econometrica ,
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Kanbur, Ravi & Keen, Michael & Toumala, Matti, 1991.
"Optimal non-linear income taxation for the alleviation of income poverty ,"
Policy Research Working Paper Series
616, The World Bank.
[Downloadable!]
Other versions:
Kanbur, R. & Keen, M. & Tuomala, M., 1990.
"Optimal Non-Linear Income Taxation for the Alleviation of Income Poverty ,"
The Warwick Economics Research Paper Series (TWERPS)
368, University of Warwick, Department of Economics.
Ravi Kanbur & Michael Keen & Matti Tuomala, 1990.
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799, Queen's University, Department of Economics.
Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994.
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European Economic Review ,
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[Downloadable!] (restricted) Cremer, Helmuth & Gahvari, Firouz & Ladoux, Norbert, 1998.
"Externalities and optimal taxation ,"
Journal of Public Economics ,
Elsevier, vol. 70(3), pages 343-364, December.
[Downloadable!] (restricted)
Atkinson, A B, 1987.
"On the Measurement of Poverty ,"
Econometrica ,
Econometric Society, vol. 55(4), pages 749-64, July.
[Downloadable!] (restricted)
Foster, James & Greer, Joel & Thorbecke, Erik, 1984.
"A Class of Decomposable Poverty Measures ,"
Econometrica ,
Econometric Society, vol. 52(3), pages 761-66, May.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
MALDONADO, Darío, 2006.
"Social security, income taxation and poverty alleviation ,"
REVISTA DE ECONOMÍA DEL ROSARIO ,
UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA.
[Downloadable!]
Johann K. Brunner, 2003.
"Optimale direkte und indirekte Steuern bei unterschiedlicher Anfangsausstattung ,"
Economics working papers
2003-10, Department of Economics, Johannes Kepler University Linz, Austria.
[Downloadable!]
Homburg, Stefan, 2002.
"The Optimal Income Tax: Restatement and Extensions ,"
Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät der Universität Hannover
dp-252, Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
[Downloadable!]
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