We present a survey of key results from second-best optimal redistribution theory and their implications for tax-transfer policy. The core results include the Corlett-Hague theorem, the Deaton conditions, the production-efficiency theorem, the Atkinson-Stiglitz theorem, and the Mirrlees-Saez...

Both federal and provincial governments in Canada levy corporate taxes on businesses in their jurisdictions, which potentially gives rise to horizontal and vertical tax externalities within the federation. Using a simple model of interdependent tax choices, we estimate tax-setting functions for...