Firouz Gahvari | University of Illinois at Urbana-Champaign (original) (raw)

Address: Champaign, Illinois, United States

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Papers by Firouz Gahvari

Research paper thumbnail of Accidental Bequests: A Curse for the Rich and a Boon for the Poor

Social Science Research Network, 2010

Research paper thumbnail of Environmental Taxes with Heterogeneous Consumers: An Application to Energy Consumption in France

RePEc: Research Papers in Economics, 2002

Research paper thumbnail of Pensions with Endogenous and Stochastic Fertility

RePEc: Research Papers in Economics, Sep 1, 2004

Research paper thumbnail of Political Competition Within and Between Parties: An Application to Environmental Policy

Social Science Research Network, Sep 1, 2005

Research paper thumbnail of Welfare improving tax evasion

The Scandinavian Journal of Economics, Jun 22, 2023

Research paper thumbnail of A Note on Inflation, Taxation and Interest Rates

Southern Economic Journal, 1985

Research paper thumbnail of Principle of targeting in environmental taxation

The Korean Economic Review, 2010

Research paper thumbnail of Political competition within and between parties: An application to environmental policy

Journal of Public Economics, Apr 1, 2008

Research paper thumbnail of Maybe 'Honor Thy Father and Thy Mother': Uncertain Family Aid and the Design of Social Long Term Care Insurance

Social Science Research Network, 2016

Research paper thumbnail of Review: R. G. Penner's (ed.) International Perspectives on Social Security Reform

Journal of Economic Literature, 2009

Research paper thumbnail of The Friedman Rule in a Model with Endogenous Growth and Cash-in-Advance Constraint

Journal of Money, Credit and Banking, Jul 26, 2012

Research paper thumbnail of Transfers in Cash and In Kind: Theory Meets the Data

Research paper thumbnail of Fertility, Human Capital Accumulation, and the Pension System

Social Science Research Network, 2009

Research paper thumbnail of Externalities and optimal taxation

Journal of Public Economics, Dec 1, 1998

Research paper thumbnail of Nonlinear taxation of income and education in the presence of income‐misreporting

Journal of Public Economic Theory, Dec 2, 2022

Research paper thumbnail of Pensions with Heterogenous Individuals and Endogenous Fertility

RePEc: Research Papers in Economics, Feb 1, 2006

Research paper thumbnail of Endogenous altruism, redistribution, and long term care

RePEc: Research Papers in Economics, Mar 1, 2013

Research paper thumbnail of Nonlinear Pricing, Redistribution and Optimal Tax Policy

RePEc: Research Papers in Economics, 1996

ABSTRACT This paper examines the role of nonlinear pricing by public (or regulated) utilities as ... more ABSTRACT This paper examines the role of nonlinear pricing by public (or regulated) utilities as a redistributive mechanism in presence of an optimal nonlinear income tax. It models an economy with many types of persons who differ in two unobservable characteristics (earning abilities and tastes). We show that nonlinear pricing does have a redistributive role; it is not a substitute for an ill-designed tax policy. We prove, assuming separable preferences, that a person whose valuation of the public sector output is smaller than the average valuation of the population (all measured at the same consumption bundle) must face a marginal price for the good above its marginal cost. Further assuming that tastes and earning abilities are perfectly correlated, we prove that everyone must face a marginal price for the public sector's output which strictly exceeds its marginal cost if correlation is positive. These properties provide an economic rationale for the provision of "support for low-income consumers" as mandated by the universal service and similar regulatory policies. Finally, we show that with correlated characteristics, implementation can be achieved through two separate functions: a pricing function that depends only on the public sector output and a tax function that depends only on income. Copyright 2002 by Blackwell Publishing Inc.

Research paper thumbnail of Wage endogeneity, tax evasion, and optimal nonlinear income taxation

Journal of Public Economic Theory, Jan 10, 2020

Research paper thumbnail of Environmental taxes with heterogeneous consumers: an application to energy consumption in France

Journal of Public Economics, Dec 1, 2003

Research paper thumbnail of Accidental Bequests: A Curse for the Rich and a Boon for the Poor

Social Science Research Network, 2010

Research paper thumbnail of Environmental Taxes with Heterogeneous Consumers: An Application to Energy Consumption in France

RePEc: Research Papers in Economics, 2002

Research paper thumbnail of Pensions with Endogenous and Stochastic Fertility

RePEc: Research Papers in Economics, Sep 1, 2004

Research paper thumbnail of Political Competition Within and Between Parties: An Application to Environmental Policy

Social Science Research Network, Sep 1, 2005

Research paper thumbnail of Welfare improving tax evasion

The Scandinavian Journal of Economics, Jun 22, 2023

Research paper thumbnail of A Note on Inflation, Taxation and Interest Rates

Southern Economic Journal, 1985

Research paper thumbnail of Principle of targeting in environmental taxation

The Korean Economic Review, 2010

Research paper thumbnail of Political competition within and between parties: An application to environmental policy

Journal of Public Economics, Apr 1, 2008

Research paper thumbnail of Maybe 'Honor Thy Father and Thy Mother': Uncertain Family Aid and the Design of Social Long Term Care Insurance

Social Science Research Network, 2016

Research paper thumbnail of Review: R. G. Penner's (ed.) International Perspectives on Social Security Reform

Journal of Economic Literature, 2009

Research paper thumbnail of The Friedman Rule in a Model with Endogenous Growth and Cash-in-Advance Constraint

Journal of Money, Credit and Banking, Jul 26, 2012

Research paper thumbnail of Transfers in Cash and In Kind: Theory Meets the Data

Research paper thumbnail of Fertility, Human Capital Accumulation, and the Pension System

Social Science Research Network, 2009

Research paper thumbnail of Externalities and optimal taxation

Journal of Public Economics, Dec 1, 1998

Research paper thumbnail of Nonlinear taxation of income and education in the presence of income‐misreporting

Journal of Public Economic Theory, Dec 2, 2022

Research paper thumbnail of Pensions with Heterogenous Individuals and Endogenous Fertility

RePEc: Research Papers in Economics, Feb 1, 2006

Research paper thumbnail of Endogenous altruism, redistribution, and long term care

RePEc: Research Papers in Economics, Mar 1, 2013

Research paper thumbnail of Nonlinear Pricing, Redistribution and Optimal Tax Policy

RePEc: Research Papers in Economics, 1996

ABSTRACT This paper examines the role of nonlinear pricing by public (or regulated) utilities as ... more ABSTRACT This paper examines the role of nonlinear pricing by public (or regulated) utilities as a redistributive mechanism in presence of an optimal nonlinear income tax. It models an economy with many types of persons who differ in two unobservable characteristics (earning abilities and tastes). We show that nonlinear pricing does have a redistributive role; it is not a substitute for an ill-designed tax policy. We prove, assuming separable preferences, that a person whose valuation of the public sector output is smaller than the average valuation of the population (all measured at the same consumption bundle) must face a marginal price for the good above its marginal cost. Further assuming that tastes and earning abilities are perfectly correlated, we prove that everyone must face a marginal price for the public sector's output which strictly exceeds its marginal cost if correlation is positive. These properties provide an economic rationale for the provision of "support for low-income consumers" as mandated by the universal service and similar regulatory policies. Finally, we show that with correlated characteristics, implementation can be achieved through two separate functions: a pricing function that depends only on the public sector output and a tax function that depends only on income. Copyright 2002 by Blackwell Publishing Inc.

Research paper thumbnail of Wage endogeneity, tax evasion, and optimal nonlinear income taxation

Journal of Public Economic Theory, Jan 10, 2020

Research paper thumbnail of Environmental taxes with heterogeneous consumers: an application to energy consumption in France

Journal of Public Economics, Dec 1, 2003

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