Tax Illusion and Labour Supply of Married Women : Evidence from German Data

@inproceedings{Heinz2011TaxIA,
  title={Tax Illusion and Labour Supply of Married Women : Evidence from German Data},
  author={Klaus Heinz and Fran�ois Laisney and Michael E. Lechner and Winfried Pohlmeier},
  year={2011}
}
Existing tax systems imply complex budget constraints, so that the assumption that individuals act on the basis of complete knowledge of the tax system has to be regarded as a theoretical borderline. Yet it is difficult to model the extent of the perception of tax costs, because questioning how economic agents decide on their optimal information level leads the economist on unsteady ground. In this respect it is significant that Atkinson and Stiglitz (1980, pp. 322-323) address this perception… CONTINUE READING