This paper reviews recent advances in the theory of optimal policy in a dynamic Mirrlees
setting, and contrasts this approach to the one based on the representative-agent Ramsey …

The optimal design of a tax system is a topic that has long fascinated economic theorists and
flummoxed economic policymakers. This paper explores the interplay between tax theory …

Optimal tax design attempts to resolve a well-known trade-off: namely, that high taxes are
bad insofar as they discourage people from working, but good to the degree that, by …

We present a model with altruistic parents and heterogeneous productivity. We derive two
key properties for optimal estate taxation. First, the estate tax should be progressive, so that …

This paper provides a new, empirically driven application of the dynamic Mirrleesian
framework by studying a feasible and potentially powerful tax reform: age-dependent labour …

We study the optimal design of integrated education finance and tax systems. The
distribution of wages is endogenously determined by the costly education decisions of …

The dynamic public finance literature underwent significant changes over the past decade.
This research agenda has now reached a stage at which it is able to analyze the design of …

This article incorporates into modern optimal tax theory the classical logic of benefit‐based
taxation in which an individual's benefit from the activities of the state is tied to his or her …

We analyze optimal income taxes and optimal schooling subsidies in a dynamic private
information economy with observable human capital accumulation. We show that under …

In this paper, we develop continuous-time methods for solving dynamic principal–agent
problems in which the agent's privately observed productivity shocks are persistent over …