DEFINITION of 'James A. Mirrlees'
An economist who won the Nobel Memorial Prize in Economics in 1996, along with William Vickrey, for his work on information asymmetry as it relates to taxation and moral hazard problems. Mirrlees believes that the tax system should be used to improve equality, and determined that the optimal marginal tax rate should be only about 20%. Furthermore, he determined that this optimal rate could efficiently be applied to everyone, not just the rich, providing justification for a flat tax rate.
INVESTOPEDIA EXPLAINS 'James A. Mirrlees'
Mirrlees' primary research interests include optimal income taxation, imperfect rationality and principal/agent situations with multidimensional choice variables. He also helped to develop the DiamondMirrlees efficiency theorem along with Peter A. Diamond.
Mirrlees was born in Scotland in 1936. He has worked as an emeritus professor of political economy at the University of Cambridge and as a fellow of Trinity College. He has also taught at Oxford.

Economist
An expert who studies the relationship between a society's resources ... 
Dismal Science
A term coined by Scottish writer, essayist and historian Thomas ... 
Flat Tax
A system that applies the same tax rate to every taxpayer regardless ... 
Marginal Tax Rate
The amount of tax paid on an additional dollar of income. The ... 
Moral Hazard
The risk that a party to a transaction has not entered into the ... 
Fintech
Fintech is a portmanteau of financial technology that describes ...

What is the difference between a simple random sample and a stratified random sample?
Simple random samples and stratified random samples differ in how the sample is drawn from the overall population of data. ... Read Full Answer >> 
What are the advantages and disadvantages of using systematic sampling?
As a statistical sampling method, systematic sampling is simpler and more straightforward than random sampling. It can also ... Read Full Answer >> 
What is the difference between the standard error of means and standard deviation?
The standard deviation, or SD, measures the amount of variability or dispersion for a subject set of data from the mean, ... Read Full Answer >> 
What is the theory of asymmetric information in economics?
The theory of asymmetric information was developed in the 1970s and 1980s as a plausible explanation for common phenomena ... Read Full Answer >> 
What level of correlation among investments will guarantee market returns but have ...
The efficient frontier set forth by modern portfolio theory (MPT) can provide an estimate of an optimal portfolio that allows ... Read Full Answer >> 
What is a "non linear" exposure in Value at Risk (VaR)?
The value at risk (VaR) is a statistical risk management technique that determines the amount of financial risk associated ... Read Full Answer >>

Fundamental Analysis
How Influential Economists Changed Our History
Find out how these five groundbreaking thinkers laid our financial foundations. 
Economics
The Austrian School Of Economics
Investopedia explains: If you think economists are only concerned with numbers, check out the Austrian School, who are more like economic philosophers. 
Economics
Adam Smith: The Father Of Economics
This free thinker promoted free trade at a time when governments controlled most commercial interests. 
Economics
The Uncertainty Of Economics: Exploring The Dismal Science
Learning about the study of economics can help you understand why you face contradictions in the market. 
Economics
Why Can't Economists Agree?
There are many reasons why economists can be given the same data and come up with entirely different conclusions. 
Forex Education
Free Market Maven: Milton Friedman
As proponent of free market capitalism, this economist changed the way the world's economies operate. 
Bonds & Fixed Income
Can Keynesian Economics Reduce BoomBust Cycles?
Learn about a British economist's proposed solution to a common economic problem. 
Fundamental Analysis
What is Quantitative Analysis?
Quantitative analysis refers to the use of mathematical computations to analyze markets and investments. 
Fundamental Analysis
Understanding the Simple Random Sample
A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen. 
Economics
What is Systematic Sampling?
Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample.