People care about relative, and not only absolute, income. This paper investigates the importance of relative income within and between castes in the Indian caste system, using a choice experimental approach. The results indicate that slightly more than half of the marginal utility of income...

This paper analyzes optimal taxation and risk-sharing arrangements in an economy with two levels of government. Both levels provide public goods and finance their expenditures via labor income taxation, where the tax base is responsive to the private agents' labor supply decisions. The...

This paper studies wage determination under piecewise linear taxes in a unionized labor market. The purpose of the paper is to model how piecewise linear taxation affects the choice set of the union and to take this information into account in the estimation. The empirical application is based...

This paper concerns the implications of progressive labor income taxation for wage determination in dynamic general equilibrium. The main purpose is to analyze the general equilibrium effects of increased tax progressivity in terms of the responses in the real wage rate, employment, the capital...