On the Optimality of the Friedman Rule with Heterogeneous Agents and Nonlinear Income Taxation
研究异质性主体经济中非线性劳动所得税下的最优通胀税，发现弗里德曼规则与不减劳动所得税结合时是帕累托有效的，且功利主义社会福利函数的最优解位于该帕累托前沿区域。
We study the optimal inflation tax in an economy with heterogeneous agents subject to nonlinear taxation of labor income. We find that the Friedman rule is Pareto efficient when combined with a nondecreasing labor income tax. In addition, the optimum for a utilitarian social welfare function lies on this region of the Pareto frontier. The welfare costs from inflation are bounded below by the area under the demand curve. (c) 2008 by The University of Chicago. All rights reserved.