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- W2135936574 abstract "The main concerns of the paper are the problems of estimating labour supply functions for use in models of optimum income taxation, and the calculation of the effect on the optimum linear tax rate of varying the elasticity of substitution, ε, between leisure and goods from 0 to 1. Backward sloping supply curves are commonly observed and they imply ε < 1. Our calculation of ε from estimates of supply curves by Ashenfelter and Heckman gives ε = 0.4. Optimum marginal rates decrease with ε when taxation is purely redistributive but may be nonmonotonic if positive revenue is to be raised. It is proved that optimum (linear or nonlinear) taxation involves a marginal rate of 100 percent when ε = 0." @default.
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- W2135936574 date "1976-07-01" @default.
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- W2135936574 title "On the specification of models of optimum income taxation" @default.
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- W2135936574 doi "https://doi.org/10.1016/0047-2727(76)90044-x" @default.
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