Nonlinear Taxation and Punishment
The paper analyzes nonlinear tax schedules that are identified by maximizing a welfare function represented by a weighted summation of net utilities over a set of n ≥ 3 differing individuals. It is demonstrated that some of the feasible and Pareto efficient tax schedules that satisfy self‐selection can only be identified by maximizing a welfare function of the above form if (at least) one of the i
