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Atkinson–Stiglitz Theorem
The Atkinson–Stiglitz theorem is a theorem of public economics which states that "where the utility function is separable between labor and all commodities, no indirect taxes need be employed." Non-linear income taxation can be used by the government and was developed in a seminal article by Joseph Stiglitz and Anthony Atkinson in 1976. The Atkinson–Stiglitz theorem is generally considered to be one of the most important theoretical results in public economics and spawned a broad literature which delimited the conditions under which the theorem holds, e.g. Saez (2002) which showed that the Atkinson–Stiglitz theorem does not hold if households have heterogeneous rather than homogeneous preferences. In practice the Atkinson–Stiglitz theorem has often been invoked in the debate on optimal capital income taxation: Because capital income taxation can be interpreted as the taxation of future consumption in excess of the taxation of present consumption, the theorem implies that gov ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Economics
Public economics ''(or economics of the public sector)'' is the study of government policy through the lens of economic efficiency and equity. Public economics builds on the theory of welfare economics and is ultimately used as a tool to improve social welfare. Welfare can be defined in terms of well-being, prosperity, and overall state of being. Public economics provides a framework for thinking about whether or not the government should participate in economic markets and if so to what extent it should do so. Microeconomic theory is utilized to assess whether the private market is likely to provide efficient outcomes in the absence of governmental interference; this study involves the analysis of government taxation and expenditures. This subject encompasses a host of topics notably market failures such as, public goods, externalities and Imperfect Competition, and the creation and implementation of government policy. Broad methods and topics include: * the theory and applic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Joseph Stiglitz
Joseph Eugene Stiglitz (; born February 9, 1943) is an American New Keynesian economist, a public policy analyst, and a full professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is a former senior vice president and chief economist of the World Bank. He is also a former member and chairman of the (US president's) Council of Economic Advisers. He is known for his support of Georgist public finance theory and for his critical view of the management of globalization, of ''laissez-faire'' economists (whom he calls " free-market fundamentalists"), and of international institutions such as the International Monetary Fund and the World Bank. In 2000, Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. He has been a member of the Columbia faculty since 2001, and received the university's highest academic rank ( ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tony Atkinson
Sir Anthony Barnes Atkinson (4 September 1944 – 1 January 2017) was a British economist, Centennial Professor at the London School of Economics, and senior research fellow of Nuffield College, Oxford. A student of James Meade, Atkinson virtually single-handedly established the modern British field of inequality and poverty studies. He worked on inequality and poverty for over four decades. Education and career Atkinson was born in Caerleon, a town in southern Wales near the border with England. Atkinson grew up in north Kent and attended Cranbrook School. After leaving school at the age of 17 he worked for IBM. After one year he left and moved to Hamburg to volunteer in a hospital in a deprived part of town. He cited his interest in inequality as beginning from this period as a volunteering in a German hospital and from studying the work of Peter Townsend. After studying mathematics for one year he changed to economics and graduated from the University of Cambridge in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of Public Economics
The ''Journal of Public Economics'' is a monthly peer-reviewed academic journal covering public economics, with particular emphasis on the application of modern economic theory and methods of quantitative analysis. It provides a forum for discussion of public policy of interest to an international readership. It was established in 1972 by Tony Atkinson and is published by Elsevier. The current editors-in-chief are John Friedman (Brown University) and Wojciech Kopczuk (Columbia University). According to the ''Journal Citation Reports'', the journal has a 2019 impact factor The impact factor (IF) or journal impact factor (JIF) of an academic journal is a scientometric index calculated by Clarivate that reflects the yearly mean number of citations of articles published in the last two years in a given journal, as i ... of 2.218. References External links * Economics journals Elsevier academic journals Monthly journals Publications established in 1972 Public economics Englis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Optimal Capital Income Taxation
Optimal capital income taxation is a subarea of optimal tax theory which studies the design of taxes on capital income such that a given economic criterion like utility is optimized. Some have theorized that the optimal capital income tax is zero. Starting from the conceptualization of capital income as future consumption, the taxation of capital income corresponds to a differentiated consumption tax on present and future consumption. Consequently, a capital income tax results in the distortion of individuals' saving and consumption behavior as individuals substitute the more heavily taxed future consumption with current consumption. Due to these distortions, zero taxation of capital income might be optimal, a result postulated by the Atkinson–Stiglitz theorem (1976) and the Chamley–Judd zero capital income tax result (1985/1986). Subsequent work on optimal capital income taxation has elucidated the assumptions underlying the theoretical optimality of a zero capital income t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Screening (economics)
Screening in economics refers to a strategy of combating adverse selection – one of the potential decision-making complications in cases of asymmetric information – by the agent(s) with less information. For the purposes of screening, asymmetric information cases assume two economic agents, with agents attempting to engage in some sort of transaction. There often exists a long-term relationship between the two agents, though that qualifier is not necessary. Fundamentally, the strategy involved with screening comprises the “screener” (the agent with less information) attempting to gain further insight or knowledge into private information that the other economic agent possesses which is initially unknown to the screener before the transaction takes place. In gathering such information, the information asymmetry between the two agents is reduced, meaning that the screening agent can then make more informed decisions when partaking in the transaction. Industries that utilise s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Redistribution Of Wealth
Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law. The term typically refers to redistribution on an economy-wide basis rather than between selected individuals. Interpretations of the phrase vary, depending on personal perspectives, political ideologies and the selective use of statistics. It is frequently used in politics, where it is used to refer to perceived redistribution from those who have more to those who have less. Occasionally, however, the term is used to describe laws or policies that cause redistribution in the opposite direction, from the poor to the rich. The phrase is often coupled with the term ''class warfare'', with high-income earners and the wealthy portrayed as victims of unfairness and discrimination. Redistribution tax policy should ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pareto Optimality
Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another worse off. The concept is named after Vilfredo Pareto (1848–1923), Italian civil engineer and economist, who used the concept in his studies of economic efficiency and income distribution. The following three concepts are closely related: * Given an initial situation, a Pareto improvement is a new situation where some agents will gain, and no agents will lose. * A situation is called Pareto-dominated if there exists a possible Pareto improvement. * A situation is called Pareto-optimal or Pareto-efficient if no change could lead to improved satisfaction for some agent without some other agent losing or, equivalently, if there is no scope for further Pareto improvement. The Pareto front (also called Pareto frontier or Pareto set) is the set of all Pareto-efficient situations. Pareto originally used the word "optimal" for th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
