Self-selection and Pareto efficient taxation

Pareto Efficient Taxation and Expenditures : Pre - and Re - Distribution

This paper shows that there is a presumption that Pareto efficient taxation entails a positive tax on capital. When tax and expenditure policies can affect the market distribution of income, those effects need to be taken into account, reducing the burden imposed on distortionary redistribution. The paper extends the 1976 Atkinson-Stiglitz results to a dynamic, overlapping generations model, co...

Pareto Efficiency in International Taxation

This paper addresses a key but neglected task in the theory of international taxation, lent increased urgency by growing awareness of the potential gains from tax coordination: the characterization of Pareto-efficient international tax regimes. It shows that the Diamond-Mirrlees theorem on the desirability of production efficiency, which underlies the key tenets of policy advice in internationa...

Efficient and Scalable Pareto Optimization by Evolutionary Local Selection Algorithms

Local selection is a simple selection scheme in evolutionary computation. Individual fitnesses are accumulated over time and compared to a fixed threshold, rather than to each other, to decide who gets to reproduce. Local selection, coupled with fitness functions stemming from the consumption of finite shared environmental resources, maintains diversity in a way similar to fitness sharing. Howe...

Efficient Taxation of Income

Pareto E ffi cient Income Taxation with Stochastic Abilities

This paper studies Pareto efficient income taxation in an economy with infinitely-lived individuals whose income generating abilities evolve according to a two-state Markov process. The study yields two main results. First, when individuals are risk neutral, the fraction of individuals who face a positive marginal income tax rate is always positive but converges to zero. Moreover, the tax rate ...