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Konrad, Kai A. (2001): Privacy and time-consistent optimal labor income taxation. In: Journal of Public Economics, Vol. 79, No. 3: pp. 503-519
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Incomplete information is a commitment device for time-consistency problems. In the context of time-consistent optimal labor income taxation privacy can lead to a Pareto superior outcome and increases the effectiveness of public education as a second best policy. © Elsevier Science S.A.