Aronsson, Thomas; Johansson-Stenman, Olof - Nationalekonomiska institutionen, Handelshögskolan - 2015
globalization. This paper analyzes optimal income taxation in a multi-country economy, where consumers derive utility from their … relative consumption compared with both other domestic residents and people in other countries. The optimal tax policy in our … resulting tax policy only internalizes the externalities that are due to within-country comparisons, whereas the tax policy …