Optimal Taxation in a Limited Commitment Economy

Article, Preprint OPEN
Yena Park;
  • Journal: Review of Economic Studies, volume 81, issue 2, pages 884-918
  • Identifiers: doi: 10.1093/restud/rdt038
  • Subject: Ramsey Taxation, Limited Enforcement
    • jel: jel:D52 | jel:E62 | jel:H21 | jel:H23

This article studies optimal Ramsey taxation when risk sharing in private insurance markets is imperfect due to limited enforcement. In a limited commitment economy, there are externalities associated with capital and labour because individuals do not take into account ... View more
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