Palokangas, Tapio K. (contributor) - 2007
. In that case, a
smaller tax τ∗ is adequate for maintaining the Pareto optimum, ∂τ∗/∂(hν) <
0.
6 Conclusions
This study … for the central planner and boosts economic growth.
The central planner sets the tax parameter τ to establish the Pareto …
optimum l = l∗. From ρ+(1−Aσ)λL < 0, (30) and (38) it then follows that
τ∗ .= 1−βσ
parenleftBig
1− 1n
parenrightBigδ + (1−σ …