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A NONLINEAR INCOME TAX PROBLEM - HOW TO FIND A PARETO OPTIMAL TAX-SYSTEM

Fülep, George (2009)
Department of Economics
Abstract
This thesis is concerned with the problems that a government of a country faces when it will find the Pareto optimal tax-system, for finitely many inhabitants in a country where individuals have quasilinear preferences and a lack of information of wage or hours worked by any particular individual, based on Weymark's model (1986, p. 201-204).
The aim of this thesis is to describe pedagogically different methods which can be used by a government to find the maximum welfare of a country and its effect on utility of each individual. In the first method the government uses the self-selection constraints and we introduce new lemmas, theorems and formulas. In the second method we use Lagrange's optimization theorem.
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@misc{1644296,
  abstract     = {This thesis is concerned with the problems that a government of a country faces when it will find the Pareto optimal tax-system, for finitely many inhabitants in a country where individuals have quasilinear preferences and a lack of information of wage or hours worked by any particular individual, based on Weymark's model (1986, p. 201-204).
The aim of this thesis is to describe pedagogically different methods which can be used by a government to find the maximum welfare of a country and its effect on utility of each individual. In the first method the government uses the self-selection constraints and we introduce new lemmas, theorems and formulas. In the second method we use Lagrange's optimization theorem.},
  author       = {Fülep, George},
  keyword      = {Pareto optimal tax-system,self-selection constraints,recurrence relation in utility,social welfare function,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {A NONLINEAR INCOME TAX PROBLEM - HOW TO FIND A PARETO OPTIMAL TAX-SYSTEM},
  year         = {2009},
}