This paper reviews recent developments in the theory of optimal labor income taxation. We emphasize connections between theory and empirical work that were initially lacking from optimal income tax theory. First, we provide historical and international background on labor income taxation and means-tested transfers. Second, we present the simple model of optimal linear taxation. Third, we consid...

This paper characterizes the set of income distributions attainable through a sequence of equalizing decentralized pairwise transfers which preserve the relative ranking of the donor and the recipient. This kind of transfer was considered by Dalton in his famous 1920 article. We provide a description of the set of allocations attainable through a sequence of Dalton transfers. This paper argues ...

This handbook chapter reviews recent developments in the theory of optimal labor income taxation. We emphasize connections between theory and empirical work that were initially lacking from optimal income tax theory. First, we provide historical and international background on labor income taxation and means-tested transfers. Second, we present the simple model of optimal linear taxation. Third...

This paper discusses the implications of climate change for official transfers from rich countries (the North) to poor countries (the South). The concern is no longer just about poverty alleviation (i.e. income in the South), but also about global emissions and resilience to climate risk. Another implication is that traditional development transfers to increase income are complemented by new fi...

This paper uses a recent demogrant for the elderly in Mexico City to estimate the e¤ect of an exogenous increase in the income of older individuals on the amount of private transfers they receive. My results show that not controlling for the endogeneity of income replicates the positive or small negative e¤ects of income on the amount of private transfers received obtained by previous work. In ...

Poverty indicators often disagree about whether a person is poor or not. Yet, when it comes to assessing whether a programme is successful in reaching the poor the dominant practice is to use an income poverty indicator. This paper investigates whether the choice of welfare indicator influences the pro-poorness assessment of an intervention. Using the official European Union income and material...