Table of Contents

1. Introduction; 2. Evolving principles of tax policy extent of redistribution; 3. Policy implications from optimal tax theory; 4. Extensions to the optimal income tax approach; 5. Estimating the optimal income tax structure; 6. Different labour market environments; 7. Behavourial economics considerations; 8. Summary of policy implications; References.

Promotional Information

This Element surveys tax policy lessons emerging from optimal tax analysis, emphasizes empirically relevant concepts, and the key equity-efficiency trade-offs.