Working Paper
Heterogeneity in Needs and Negative Marginal Tax Rates
Spencer Bastani, Sören Blomquist, Luca Micheletto
CESifo, Munich, 2017
CESifo Working Paper No. 6708
CESifo, Munich, 2017
CESifo Working Paper No. 6708
This paper highlights the possibility that negative marginal tax rates arise in an intensive-margin optimal income tax model where wages are exogenous and preferences are homogeneous, but where agents differ both in skills (labor market productivity) and their needs for a work-related consumption good.
CESifo Category
Public Finance
Labour Markets
Public Finance
Labour Markets
JEL Classification: H210