Non-Leaky Buckets: Optimal Redistributive Taxation and Agency Costs

Economists have generally argued that income redistribution comes at a cost in aggregate incomes. We provide a counter-example in a model where private information gives rise to incentive constraints. In the model, a wage tax creates the usual distortion in labor-leisure choices, but the grants that it finances reduce a distortion in investment in human capital. We prove that simple redistributive policies can yield Pareto improvements and increase aggregate incomes. Where higher education is beyond the reach of the poor, the wage tax- transfer policy is under most circumstances more effective than targeted credit taxes or subsidies in increasing over-all efficiency.

An integrated source of broadband quadrature squeezed light

An integrated silicon nitride resonator is proposed as an ultra-compact source of bright single-mode quadrature squeezed light at 850 nm. Optical properties of the device are investigated and tailored through numerical simulations, with particular attention paid to loss associated with interfacing the device. An asymmetric double layer stack waveguide geometry with inverse vertical tapers is proposed for efficient and robust fibre-chip coupling, yielding a simulated total loss of -0.75 dB/facet. We assess the feasibility of the device through a full quantum noise analysis and derive the output squeezing spectrum for intra-cavity pump self-phase modulation. Subject to standard material loss and detection efficiencies, we find that the device holds promises for generating substantial quantum noise squeezing over a bandwidth exceeding 1 GHz. In the low-propagation loss regime, approximately -7 dB squeezing is predicted for a pump power of only 50 mW.Comment: 23 pages, 12 figure