"1957, south-east suburbs of London. Jean Swinney is a feature writer on a local paper, disappointed in love and--on the brink of forty--living a limited existence with her truculent mother. When a young Swiss woman, Gretchen Tilbury, contacts the...
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"1957, south-east suburbs of London. Jean Swinney is a feature writer on a local paper, disappointed in love and--on the brink of forty--living a limited existence with her truculent mother. When a young Swiss woman, Gretchen Tilbury, contacts the paper to claim that her daughter is the result of a virgin birth, it is down to Jean to discover whether she is a miracle or a fraud. Bt the more she investigates, the more her life becomes strangely (and not unpleasantly) intertwined with that of the Tilburys: Gretchen herself, her husband Howard--with his dry wit and gentle disposition--and her charming daughter Margaret But they are the subject of the story Jean is researching for the newspaper, a story that increasingly seems to be causing dark ripples across all their lives. And yet Jean cannot bring herself to discard the chance of finally having a taste of happiness. But there will be a price to pay, and it will be unbearable."--Publisher description
Verlag:
CER-ETH - Center of Economic Research at ETH Zurich, Zürich
The purpose of this article is to integrate the class of preferences developed by Gul and Pesendorfer into the theory of optimal redistributive taxation with heterogenous consumers and asymmetric information. The consumers are inclined to over-spend...
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ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
Signatur:
DS 590
Fernleihe:
keine Fernleihe
The purpose of this article is to integrate the class of preferences developed by Gul and Pesendorfer into the theory of optimal redistributive taxation with heterogenous consumers and asymmetric information. The consumers are inclined to over-spend on a commodity for which they experience temptation (TP good). Resisting that temptation gives rise to a utility cost. This cost provides two novel motives for influencing the consumption and labor supply choices; improving the welfare (by reducing the utility cost of exercising self-control) and providing the government with a novel channel via which tax policy can be used to relax a binding self-selection constraint. The welfare motive implies a positive tax on the TP good, as well as a positive (negative) marginal labor income tax rate if the consumer's marginal valuation of leisure exceeds (falls short of) the marginal valuation of leisure that arises if the consumer would succumb to the temptation. We use iso-elastic and logarithmic utility functional form specifications to exemplify when the self-selection channel may lead to higher/lower commodity and marginal labor income taxes.
