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

Author(s): Kai A. Konrad
Publication Date: December 1999
Keyword(s): Privacy, Time Inconsistent Income Taxation
JEL(s): H21, H23
Programme Areas: Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=2326

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.