Beaudry, Paul; Blackorby, Charles; Szalay, Dezsö - In: American Economic Review 99 (2009) 1, pp. 216-42
This paper explores how to optimally set taxes and transfers when taxation authorities are uninformed about individuals' value of time in both market and nonmarket activities; and can observe both market-income and time allocated to market employment. We show that optimal redistribution in this...