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Inequality and Optimal Redistribution (Paperback)
Loot Price: R561
Discovery Miles 5 610
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Inequality and Optimal Redistribution (Paperback)
Series: Elements in Public Economics
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Loot Price R561
Discovery Miles 5 610
Expected to ship within 12 - 17 working days
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From the 1980s onward, income inequality increased in many advanced
countries. It is very difficult to account for the rise in income
inequality using the standard labour supply/demand explanation.
Fiscal redistribution has become less effective in compensating
increasing inequalities since the 1990s. Some of the basic features
of redistribution can be explained through the optimal tax
framework developed by J. A. Mirrlees in 1971. This Element surveys
some of the earlier results in linear and nonlinear taxation and
produces some new numerical results. Given the key role of capital
income in the overall income inequality, it also considers the
optimal taxation of capital income. It examines empirically the
relationship between the extent of redistribution and the
components of the Mirrlees framework. The redistributive role of
factors such as publicly provided private goods, public employment,
endogenous wages in the overlapping generations model and income
uncertainty are analysed.
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