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dc.contributor.authorBrendon, C.
dc.date.accessioned2022-04-28T12:51:28Z
dc.date.available2022-04-28T12:51:28Z
dc.date.issued2022-03-25
dc.identifier.otherCWPE2221
dc.identifier.otherJIWP2210
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/336547
dc.description.abstractThis paper analyses the design of optimal nonlinear savings taxation, in a multi-period consumption-savings economy where consumers face persistent, uninsurable shocks to the marginal value that they place on consuming. Its main contributions are: (a) to show that shocks of this kind generically justify positive marginal savings taxes, and (b) to characterise these taxes by reference to a limited number of sufficient statistics. The method for obtaining this characterisation is generalisable, and provides a roadmap for reconnecting ‘Mirrleesian’ and ‘sufficient statistics’ approaches to dynamic taxation. Intuitively, dynamic asymmetric information problems imply significant restrictions on intertemporal consumption elasticities. These restrictions keep sufficient statistics representations manageable, despite the multi-dimensional choice setting.
dc.publisherFaculty of Economics, University of Cambridge
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.relation.ispartofseriesJaneway Institute Working Paper Series
dc.rightsAll Rights Reserved
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/
dc.subjectNonlinear Taxation
dc.subjectSufficient Statistics
dc.subjectMirrleesian Taxation
dc.subjectNew Dynamic Public Finance
dc.titleOptimal Nonlinear Savings Taxation
dc.typeWorking Paper
dc.identifier.doi10.17863/CAM.83968


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