Optimal taxation under different concepts of justness

Rostam-Afschar, Davud; Jessen, Robin; Metzing, Maria

Optimal taxation under different concepts of justness

dc.contributor.author	Rostam-Afschar, Davud	de
dc.contributor.author	Jessen, Robin	de
dc.contributor.author	Metzing, Maria	de
dc.date.accessioned	2024-04-08T08:54:54Z
dc.date.available	2024-04-08T08:54:54Z
dc.date.created	2017-09-28
dc.date.issued	2017
dc.description.abstract	A common assumption in the optimal taxation literature is that the social planner maximizes a welfarist social welfare function with weights decreasing with income. However, high transfer withdrawal rates in many countries imply very low weights for the working poor in practice. We reconcile this puzzle by generalizing the optimal taxation framework by Saez (2002) to allow for alternatives to welfarism. We calculate weights of a social planner’s function as implied by the German tax and transfer system based on the concepts of welfarism, minimum absolute and relative sacrifice, as well as subjective justness. For the latter we use a novel question from the German Socio-Economic Panel. We find that the minimum absolute sacrifice principle is in line with social weights that decline with net income. Absolute subjective justness is roughly in line with decreasing social weights, which is reflected by preferences of men, West Germans, and supporters of the grand coalition parties.	en
dc.identifier.swb	493887261
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/6196
dc.identifier.urn	urn:nbn:de:bsz:100-opus-14110
dc.language.iso	eng
dc.relation.ispartofseries	Hohenheim discussion papers in business, economics and social sciences; 2017,27
dc.rights.license	publ-mit-pod	en
dc.rights.license	publ-mit-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_mit_pod.php
dc.subject	Justness	en
dc.subject	Optimal taxation	en
dc.subject	Income redistribution	en
dc.subject	Equal sacrifice	en
dc.subject	Inequality	en
dc.subject	Subjective preferences	en
dc.subject.ddc	330
dc.subject.gnd	Steuergerechtigkeit	de
dc.title	Optimal taxation under different concepts of justness	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	3	de
local.institute.number	520	de
local.opus.number	1411
local.series.issueNumber	2017,27
local.series.title	Hohenheim discussion papers in business, economics and social sciences
local.university	Universität Hohenheim	de
local.university.faculty	Faculty of Business, Economics and Social Sciences	en
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institute for Economics	en
local.university.institute	Institut für Volkswirtschaftslehre	de

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