The Taxation of Superstars

How are optimal taxes affected by superstar phenomena? To answer this question, we extend the Mirrlees model to incorporate an assignment problem in the labor market that generates superstar effects. Perhaps surprisingly, rather than providing a rationale for higher taxes, we show that superstar eff...

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Bibliographic Details
Main Authors: Scheuer, Florian, Werning, Ivan
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Published: Oxford University Press 2018
Online Access:http://hdl.handle.net/1721.1/114173
https://orcid.org/0000-0003-2370-5575