The optimal income tax when poverty is a public `bad' Export

@article{citeulike:1904604, abstract = {Poverty is considered as an aggregate negative externality that may affect people differently 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 the less skilled individuals. Negative marginal tax rates play the role of a Pigouvian earnings subsidy and foster the supply of labor of poor individuals. The no-distortion at the endpoints result which is therefore violated can be restored once the focus is shifted from individual to social distortions.}, author = {Wane, Waly}, citeulike-article-id = {1904604}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/S0047-2727(00)00143-2}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6V76-43YH0D0-5/2/ed78468be0d60e0e4ac01a002ddad7fe}, doi = {10.1016/S0047-2727(00)00143-2}, journal = {Journal of Public Economics}, keywords = {economics, redistribution, welfareeconomics}, month = {November}, number = {2}, pages = {271--299}, posted-at = {2007-11-12 23:51:49}, priority = {2}, title = {The optimal income tax when poverty is a public `bad'}, url = {http://dx.doi.org/10.1016/S0047-2727(00)00143-2}, volume = {82}, year = {2001} }

TY - JOUR ID - citeulike:1904604 L3 - citeulike-article-id:1904604 N2 - Poverty is considered as an aggregate negative externality that may affect people differently 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 the less skilled individuals. Negative marginal tax rates play the role of a Pigouvian earnings subsidy and foster the supply of labor of poor individuals. The no-distortion at the endpoints result which is therefore violated can be restored once the focus is shifted from individual to social distortions. IS - 2 JF - Journal of Public Economics EP - 299 TI - The optimal income tax when poverty is a public `bad' VL - 82 SP - 271 KW - economics KW - redistribution KW - welfareeconomics AU - Wane, Waly PY - 2001/11// UR - http://dx.doi.org/10.1016/S0047-2727(00)00143-2 ER -