Optimal taxes and transfers under partial information

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Autoren

  • Stefan Homburg
  • Tim Lohse

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OriginalspracheEnglisch
Seiten (von - bis)622-629
Seitenumfang8
FachzeitschriftJahrbucher fur Nationalokonomie und Statistik
Jahrgang225
Ausgabenummer6
PublikationsstatusVeröffentlicht - 1 Dez. 2005

Abstract

Effective from 2005, benefits for long-term unemployed have been reduced in Germany to the level of social assistance. This measure reflects the view that "all who are able to work, should work" - a view which makes sense only if the government can distinguish the disabled from the productive. In this paper we augment the standard model of optimal taxation, where the government has no information about individual productivities, by this very assumption: Partial information means that the government can distinguish the disabled from the productive, but cannot distinguish among the different productive types. An interesting proposition about the shape of optimal tax-transfer schemes under partial information is derived. Moreover, it is shown that unemployment on the side of the productive poor may still be optimal.

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Optimal taxes and transfers under partial information. / Homburg, Stefan; Lohse, Tim.
in: Jahrbucher fur Nationalokonomie und Statistik, Jahrgang 225, Nr. 6, 01.12.2005, S. 622-629.

Publikation: Beitrag in FachzeitschriftArtikelForschungPeer-Review

Homburg S, Lohse T. Optimal taxes and transfers under partial information. Jahrbucher fur Nationalokonomie und Statistik. 2005 Dez 1;225(6):622-629. doi: 10.1515/jbnst-2005-0604
Homburg, Stefan ; Lohse, Tim. / Optimal taxes and transfers under partial information. in: Jahrbucher fur Nationalokonomie und Statistik. 2005 ; Jahrgang 225, Nr. 6. S. 622-629.
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