Optimal Redistributive Policy with Endogenous Wages
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.
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Volume (Year): 60 (2004)
Issue (Month): 2 (August)
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