Optimal Nonlinear Labor Income Taxation in Dynamic Economies

@inproceedings{Balle2006OptimalNL,
  title={Optimal Nonlinear Labor Income Taxation in Dynamic Economies},
  author={Salvador Balle and Amedeo Spadaro},
  year={2006}
}
The aim of this paper is to explore the characteristics of the optimal nonlinear labor income tax in dynamic economies with information asymmetries and human capital accumulation. We develop a dynamic optimal income tax model in which agent’s productivity evolves over time according to two different factors: an exogenous component and a learning by doing… CONTINUE READING