The effect of accepting more immigrants on welfare in the presence of a pay-as-you-go social security system is analyzed qualitatively and quantitatively. First, it is shown that if initially there exist intergenerational government transfers from the young to the old, the government can lead an...

The effect of accepting more immigrants on welfare in the presence of a pay-as-you-go social security system is analyzed qualitatively and quantitatively. First, it is shown that if initially there exist intergenerational government transfers from the young to the old, the government can lead an...

This paper shows that tariffs and production subsidies can Pareto-improve welfare in a small open economy when a government is concerned with income redistribution under asymmetric information. In international trade theory, free trade is optimal if the government can use lump-sum taxes and...

This paper analyzes the role of production distortion for income redistribution in an international trade model. In particular, it examines the role of the Stolper and Samuelson effect (Stolper and Samuelson, 1941) on efficient income redistribution. It first shows that production inefficiency...

Recently, several papers have re-examined the so called production efficiency theorem and the Atkinson and Stiglitz theorem on commodity taxes in the optimal taxation literature. Naito [12] showed that indirect redistribution through production distortion or consumption distortion can...

Recently, several papers have re-examined the so called production efficiency theorem and the Atkinson and Stiglitz theorem on commodity taxes in the optimal taxation literature. Naito (1998) showed that indirect redistribution through production distortion or consumption distortion can...

This paper analyzes optimal nonlinear income and inheritance taxation by incorporating two types of models that were developed independently in the public finance literature: an infinite horizon representative agent model such as Judd (1995), Chamley (1986) and Lucas (1992), and asymmetric...

This paper analyzes the role of production distortion for income redistribution in an international trade model. In particular, this paper examines the role of the Stolper and Samuelson effect (Stolper and Samuelson 1941) on efficient income redistribution. It first shows that production...