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|
|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.