Intro
Preface
Contents
1 Standard Optimal Taxation with Single Agents: What It Is and What to Use in Its Place
1.1 A Brief Synthesis of Standard Optimal Tax Theory
1.1.1 The Model
1.1.2 The Tax Rules
1.1.3 A Simpler Setting: Linear Income Taxation
1.2 What to Use in Place of the Standard Framework
1.2.1 Intragenerational Issues
1.2.2 Intergenerational Issues
2 Optimal Taxation in��the��Presence of��Household Production
2.1 Indirect Taxation in��the��Presence of��Home-Production
2.1.1 The consumer's and��the��Government's Problems
2.2 The Tax Rules

2.2.1 Taxing Input Goods
2.2.2 Taxing Market Substitutes
2.2.3 Taxing Input Goods and��Market Substitutes
2.2.4 User Charges
2.2.5 Summary So��Far
2.3 Redistributive Taxation in��the��Presence of��Bi-dimensional Differences Among Households
2.3.1 Home-Production of��Non-tradeable Goods
2.3.2 The Direction of��Re-distribution
2.3.3 Optimal Second-Best Taxation
3 Income Taxation with Two-Person Households
3.1 Introduction
3.2 A Model of Household Choice
3.3 Income Taxation
3.3.1 Comparative Advantages and Tax Policy
3.3.2 Optimal Direct Taxation
3.4 Tax Reform

3.4.1 Alternative Income Tax Structures
3.4.2 Non Cooperative Time Allocation with Differentiated Tax Rates
3.4.3 A Move Towards a Flat Rate System
3.5 Concluding Remarks
4 Income Taxation and Public Spending with Two-Person Households
4.1 Introduction
4.2 Household Choice
4.3 Optimal Policy I: Efficiency
4.4 Optimal Policy II: Equity
5 The Fiscal Treatment of Family Size: An Overview
5.1 Introduction
5.2 A Model of Family Choice
5.3 Establishing Benchmark Results
5.3.1 First-Best Policy
5.3.2 Second-Best Taxes When Only Efficiency Matters

5.4 Second-Best Taxes with a Redistributive Objective
5.4.1 Linear Tax System
5.4.2 Mixed Tax System
5.5 Concluding Remarks
6 The Fiscal Treatment of Family Size: A Further Look
6.1 Introduction
6.2 The Setup
6.2.1 Households
6.2.2 Mimickers
6.3 Optimal Taxation
6.3.1 The Direction of Re-distribution
6.3.2 Taxes on Income
6.3.3 Taxes on Commodities, and Taxes on Number of Children
6.4 Redistributive Policy with Four Household Types
6.4.1 Optimal Income Tax
6.4.2 Optimal Indirect Taxes and Taxes on Children

6.4.3 The Tax Treatment of Children and Child-Specific Goods
6.5 Conclusions
7 The Tax Treatment of Children When Parents Act Non-cooperatively: A Preliminary Account
7.1 Introduction
7.2 A Model with Exogenous Fertility
7.2.1 Revenue-Neutral Fiscal Reforms
7.3 Concluding Remarks: Moving Towards Endogenous Fertility
Appendix Bibliography