"What does an income tax schedule look like, which takes account of the trade-off between equity and efficiency? This question was first asked by Mirrlees (1971) who developed the standard model of the optimal nonlinear income tax. Since then innumerable papers have generalized, refined, or corrected his analysis. It has also been realized that the second-best approach to income taxation pertains to a wide variety of economic problems such as monopoly pricing or contract theory in general. In this respect Mirrlees’ article has opened an important and fascinating strand of economic thought."
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University of Cambridge alumniNobel laureates in EconomicsEconomists from ScotlandFellows of the British AcademyNobel laureates from Scotland
Original Language: English
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Sources
Stefan Homburg. "The optimal income tax: Restatement and extensions." FinanzArchiv/Public Finance Analysis (2001): 363-395.
https://en.wikiquote.org/wiki/James_Mirrlees
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James Mirrlees
Sir James Mirrlees FRSE, FBA (5 July 1936 - 29 August 2018) was a Scottish economist and recipient of the 1996 Nobel Memorial Prize in Economics. He was knighted in 1998.
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