This challenging book extends standard economic theory to take into account the presence of heterogeneity among economic agents. It argues for an approach to economic analysis which regards the economy as an interactive system with heterogeneous agents and not simply a system which treats...

Recommended readings (Machine generated): J.A. Mirrlees (1971), 'An Exploration in the Theory of Optimum Income Taxation', Review of Economic Studies, 38 (2), April, 175-208 -- Peter A. Diamond and James A. Mirrlees (1971a), 'Optimal Taxation and Public Production I: Production Efficiency',...