Calendrier du 07 septembre 2023
Behavior seminar
Du 07/09/2023 de 11:00 à 12:00
R2.21
JOHANSSON STENMAN Olof (University of Gothenburg, Sweden)
Optimal Taxation and Other-Regarding Preferences, by Thomas Aronsson and Olof Johansson-Stenman.
The present paper analyzes optimal redistributive income taxation in a Mirrleesian framework extended with other-regarding preferences at the individual level. We start by examining a general model where the other-regarding preference component of the individual utility functions is formulated to encompass almost any form of preferences for other people’s consumption, and then continue with four prominent special cases. Two of these reflect self-centered inequality aversion, based on Fehr and Schmidt (1999) and Bolton and Ockenfels (2000), whereas the other two reflect non-self-centered inequality aversion, where people have preferences for a low Gini coefficient and a high minimum consumption level in the society, respectively. We find that other-regarding preferences may substantially increase marginal tax rates, including the top rates, and that different types of other-regarding preferences have very different implications for optimal taxation