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dc.contributor.authorSlack, Sean
dc.contributor.authorUlph, David
dc.date.accessioned2019-11-23T00:36:50Z
dc.date.available2019-11-23T00:36:50Z
dc.date.issued2018-08
dc.identifier.citationSlack , S & Ulph , D 2018 , ' Subjective well-being, consumption comparisons, and optimal income taxation ' , Journal of Public Economic Theory , vol. 20 , no. 4 , pp. 455-476 . https://doi.org/10.1111/jpet.12281en
dc.identifier.issn1097-3923
dc.identifier.otherPURE: 251432849
dc.identifier.otherPURE UUID: ea3dcc96-9f61-4aec-ae2c-dd29ac6983d4
dc.identifier.otherScopus: 85034740899
dc.identifier.otherORCID: /0000-0003-3171-1270/work/59464532
dc.identifier.otherWOS: 000438725500001
dc.identifier.urihttps://hdl.handle.net/10023/18992
dc.descriptionFinancial support from the AXA Research Fund is gratefully acknowledged.en
dc.description.abstractWe introduce reference consumption into the standard utility function from optimal tax analysis. Individuals compare their consumption “narrowly” with those of the same productivity, or “broadly” with the average consumption across society. In both narrow and broad equilibria reference consumption is an increasing function of the tax parameters, so generating new theoretical results. Individual well-being decreases with the net wage (net-of-tax) rate for low productivity workers under narrow (broad) comparisons, thus adjusting redistributive taxation considerations. Further, in both cases reference consumption distorts labor supply away from the social optimum level, giving a distortion-correcting role for taxation.
dc.language.isoeng
dc.relation.ispartofJournal of Public Economic Theoryen
dc.rights© 2017 Wiley Periodicals, Inc. This work has been made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1111/jpet.12281en
dc.subjectOptimal income taxationen
dc.subjectRelative consumptionen
dc.subjectWell-beingen
dc.subjectHB Economic Theoryen
dc.subjectNDASen
dc.subjectBDCen
dc.subject.lccHBen
dc.titleSubjective well-being, consumption comparisons, and optimal income taxationen
dc.typeJournal articleen
dc.description.versionPostprinten
dc.contributor.institutionUniversity of St Andrews. School of Economics and Financeen
dc.identifier.doihttps://doi.org/10.1111/jpet.12281
dc.description.statusPeer revieweden
dc.date.embargoedUntil2019-11-23
dc.identifier.urlhttps://onlinelibrary.wiley.com/doi/full/10.1111/jpet.12281#support-information-sectionen


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