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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)
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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.