Upper bounds on efficient tax rates in a progressive labor income tax schedule are derived within the standard framework of optimal taxation. A tax rate is efficient if it is not Pareto dominated by any other tax rate. The formulas derived are applied to the Swedish 1982 tax schedule....

A model of occupational choice is considered. Due to incomplete and asymmetric information, various individuals have different sets of choice. Conceivable definitions of fair wages are discussed and analyzed. Existence of a fair wage structure is proved in a formal model where occupation is...

The concept of a lower bound on optimal linear taxes is analyzed. A marginal tax rate is defined to be optimal if the corresponding state of the economy is a welfare maximum for some social welfare function reflecting at least a minimal aversion to inequality. The lower bound on optimal tax...

A simple mod el of linear taxation is used to single out different types of tax equilibria. S ufficient conditions for national income to be a decreasing function of the marg inal tax rate are given for each case. Equilibria are classified according to wh ether (1) aggregate labor supply is...