Redistributive taxation and social insur
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Cremer, Helmuth; Pestieau, Pierre
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Article
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1996
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Springer
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English
β 684 KB
This paper studies the role of social insurance as a redistributive mechanism in presence of an optimal (linear or general) income tax. It considers a second-best setting with two unobservable individual characteristics: ability, measured by the wage rate and risk, measured by the probability of inc