When Kolm Meets Mirrless: ELIE
This article discusses the properties of Kolm’s ELIE proposal in the Context of optimal income taxation “à la Mirrlees”. It first shows that ELIE gives rise to non-standard type-dependent budget sets, which has important implications in terms of a minimum labour requirement. Second, it adopts the Mirrleesian framework to characterize ELIE as a first-best tax scheme and casts light on the very specific shape of the distribution of social weights that generate it. Third, it shows that ELIE is incentive compatible only when both gross income and time worked are verifiable, which seems to be a strong assumption for a non-negligible number of taxpayers.
|Date of creation:||Nov 2008|
|Date of revision:||Aug 2008|
|Contact details of provider:|| Postal: |
Web page: http://www.idep-fr.org/
More information through EDIRC
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.:
- J. A. Mirrlees, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Oxford University Press, vol. 38(2), pages 175-208.
- Mirrlees, James A, 1997.
"Information and Incentives: The Economics of Carrots and Sticks,"
Royal Economic Society, vol. 107(444), pages 1311-29, September.
- Mirrlees, James A., 1996. "Information and Incentives: The Economics of Carrots and Sticks," Nobel Prize in Economics documents 1996-1, Nobel Prize Committee.
- Dasgupta, Partha & Hammond, Peter, 1980. "Fully progressive taxation," Journal of Public Economics, Elsevier, vol. 13(2), pages 141-154, April.
- Frank A. Cowell, 1990. "Cheating the Government: The Economics of Evasion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262532484, June.
When requesting a correction, please mention this item's handle: RePEc:iep:wpidep:0811. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yves Doazan)The email address of this maintainer does not seem to be valid anymore. Please ask Yves Doazan to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.