Homburg, Stefan
[Sonstige Person, Familie und Körperschaft];
Lohse, Tim
[Sonstige Person, Familie und Körperschaft]
;
Universität Hannover Wirtschaftswissenschaftliche Fakultät
Optimal tax-transfer-schemes under partial information
- [Elektronische Ressource]
Beschreibung:
According to a widely held belief, all who are able to work, should workʺ. We consider this statement within a framework of non-linear taxation. The crucial difference between our model and the standard model is that the government can distinguish between productive persons and the disabled. A general proposition regarding the design of tax-transfer-schemes under such partial information is derived. Moreover, it is shown that unemployment on the side of the productive poor may still be optimal.