A Note on Redistributive Taxation, Labor Supply, and National Income

Grossmann, Volker

Back

Journal article

A Note on Redistributive Taxation, Labor Supply, and National Income

BP2-STS

Grossmann, Volker ORCID University of Zurich

2003

Published in:

International Journal of Business and Economics. - 2003, vol. 2, no. 1, p. 39-48

English This paper shows that redistributive taxation can raise per capita income provided that labor supply is sufficiently backward-bending at higher wage rates. Moreover, we study general equilibrium effects regarding work incentives for less able individuals. Finally, we show that optimal taxation typically requires per capita income to decrease with higher taxation at the margin.

Faculty

Faculté des sciences économiques et sociales et du management

Department

Département d'économie politique

Language