@TechReport{iza:izadps:dp17566,
            	author={Isaak, Niklas and Jessen, Robin},
            	title={Normative Judgments Implicit in the Tax System: A Simulation Approach},
            	year={2024},
	month={Dec},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17566},
            	url={https://www.iza.org/index.php/publications/dp17566},
	abstract={How much does society value redistribution? The common method to derive inverse-optimum welfare weights is by inverting an optimal-tax model. Our alternative imposes fewer restrictions on labor supply and enables comparisons across household types. We use a structural labor supply model to calculate the marginal value of public funds for various small tax reductions, directly linked to welfare weights. An application to Germany finds: i) The tax-transfer system is optimal if society values one additional Euro for the bottom decile three times as much as for the median. ii) At low-medium incomes, weights for couples exceed those for singles substantially.},
	keywords={inverse optimum;microsimulation;marginal value of public funds;social welfare function;optimal taxation;labor supply;efficiency},
            }