Jacobs, Bas; Schindler, Dirk - In: Journal of Public Economics 96 (2012) 9-10, pp. 853-868
This paper analyzes optimal linear taxes on labor income and savings in a two-period life-cycle model with ex ante identical households, endogenous leisure demands in both periods, and general processes of skill shocks over the life cycle. We demonstrate that the Atkinson–Stiglitz theorem...