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Can Higher Inequality Lead to Less Progression?

By Tomer Blumkin and Efraim SadkaTomer Blumkin and Efraim Sadka

Abstract

We extend the optimal tax literature by assuming that earnings abilities are no longer purely innate abilities, but rather partly acquired through investments in human capital. This assumption adds endogenous mobility to the primarily static optimal tax models. The implications for the optimal redistribution policy are analyzed. JEL Classification: H2, D

Topics: Key Words, Mobility, Optimal Taxation, Re-distribution, Education, Inequality
Year: 2003
OAI identifier: oai:CiteSeerX.psu:10.1.1.195.9741
Provided by: CiteSeerX
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