DP2326 | Privacy, Time Consistent Optimal Labour Income Taxation and Education Policy

Author(s)

Kai A. Konrad

Publication Date

17/12/1999

JEL Code(s)

  • H21, H23

Keyword(s)

  • privacy, Time Inconsistent Income Taxation

Programme Area(s)

  • Public Economics

Network(s)

Abstract

Incomplete information is a commitment device for time consistency problems. In the context of time consistent labour income taxation privacy reduces welfare losses and increases the effectiveness of public education as a second best policy.