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Optimal Taxation and Occupational Choice: The Redistributive Role of Production Inefficiencies

Author

Listed:
  • Jean-Marie Lozachmeur

    (Toulouse School of Economics)

  • Alessandro Pavan

    (Northwestern University)

  • Renato Gomes

    (Toulouse School of Economics)

Abstract

Our analysis offers a different rationale for the failure of the Atkinson-Stiglitz theorem than that of Naito (1999). Moreover, our results are in sharp contrast to those of Saez (2004) and Scheuer (2012), who considers an occupational choice model where workers have heterogeneous idiosyncratic preferences for occupations but homogenous skills.

Suggested Citation

  • Jean-Marie Lozachmeur & Alessandro Pavan & Renato Gomes, 2013. "Optimal Taxation and Occupational Choice: The Redistributive Role of Production Inefficiencies," 2013 Meeting Papers 873, Society for Economic Dynamics.
    • Handle: RePEc:red:sed013:873
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