Martin Feldstein has recently done work on the distortions created by the income tax that take into account broader notions of labor supply behavior, such as shifting taxable income into untaxed fringe benefits or better working conditions. The cite is
Feldstein, Martin. "Tax Avoidance and the Deadweight Loss of the Income Tax," in Review of Economics and Statistics, November 1999, 81(4): pp 674-680. Also NBER Working Paper No. 5055. for a nice introduction see his May 1996 AER Richard Ely lecture on social security privatization or the introduction (it's basicallly the same paper) to his volume on Privatizing Social Security. Alex -- Dr. Alexander Tabarrok Vice President and Director of Research The Independent Institute 100 Swan Way Oakland, CA, 94621-1428 Tel. 510-632-1366, FAX: 510-568-6040 Email: [EMAIL PROTECTED]
