POSITIONAL CONCERNS IN AN OLG MODEL OPTIMAL LABOR AND CAPITAL INCOME TAXATION
This article concerns optimal income taxation under asymmetric information in a two type OLG model when indi viduals relative consumption matters Positional concerns affect the policy choices via two channels (i) the average degree of positionality and (ii) positionality differences between the low ability type and the mimicker Under plausible empirical estimates the marginal labor income tax rate