Working Paper: CEPR ID: DP2326
Authors: Kai A. Konrad
Abstract: Incomplete information is a commitment device for time consistency problems. In the context of time consistent labour income taxation privacy reduces welfare losses and increases the effectiveness of public education as a second best policy.
Keywords: privacy; time inconsistent income taxation
JEL Codes: H21; H23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Incomplete information (D82) | government tax policy (H29) |
| government tax policy (H29) | individual educational investment (I26) |
| Incomplete information (D82) | individual educational investment (I26) |
| Incomplete information (D82) | welfare outcomes of individuals (I30) |
| privacy (K24) | individual educational investment (I26) |
| privacy (K24) | welfare outcomes of individuals (I30) |