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.