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Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook x Welfare Economics x Information, Knowledge, and Uncertainy x clear all

Optimal Taxation with Rent-Seeking

Casey Rothschild and Florian Scheuer.

in The Review of Economic Studies

July 2016; p ublished online March 2016 .

Journal Article. Subjects: Microeconomics; General Equilibrium and Disequilibrium; Welfare Economics; Information, Knowledge, and Uncertainy; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; Taxation, Subsidies, and Revenue; Demand and Supply of Labour; Wages, Compensation, and Labour Costs. 17279 words.

We develop a framework for optimal taxation when agents can earn their income both in traditional activities, where private and social products coincide, and in rent-seeking activities,...