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A general theory of inverse welfare functions

open access: yesTheoretical Economics, Volume 21, Issue 3, Page 973-1018, July 2026.
This paper develops a general theory to recover the inverse welfare function that rationalizes a given tax schedule as optimal. Our theory allows for complex environments including the presence of multidimensional tax schedules, bunching/jumping behavior, optimization frictions, general equilibrium effects, and externalities.
Katy Bergstrom, William Dodds
wiley   +1 more source

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