| Article ID: | iaor1995585 |
| Country: | Netherlands |
| Volume: | 17 |
| Issue: | 3 |
| Start Page Number: | 443 |
| End Page Number: | 465 |
| Publication Date: | May 1993 |
| Journal: | Journal of Economic Dynamics and Control |
| Authors: | Miller Preston J. |
| Keywords: | finance & banking |
This study examines the shape of an optimal income tax schedule in a monetary economy. In equilibrium, money’s role is to allocate resources across generations, while a tax-transfer scheme serves as a form of social insurance. It is found that the optimal real income tax with money can be progressive.