income distribution, taxation

This paper studies the optimal top income tax rate. Top income earners are modeled as managers operating a span-of-control technology as in Rosen (1982). In particular, managerial skills increase managers' productivity through both supervision and indivisible decisions, thus giving rise to a...

A large positive literature emphasizes the role of technological change in driving the demand for skill and talent. We consider the normative implications of such technical change for policy design.