"Optimal redistributive policies by publicly provided inputs and income taxation"
Governments redistribute income through taxes, transfers, and public services.
In this paper, published in the Journal of Public Economic Theory, Thomas Bassetti and Luciano Greco, from the Department of Economics and Management of the University of Padova, characterize the conditions under which nonlinear income taxation is optimally combined with a publicly provided input in economies where individual wages are driven by households' exogenous abilities and unobservable input investments.
Read the full article here: https://unipd.link/Paper_bassetti_greco_redistributive_policies