WhenPeter Diamond was a graduate student atMIT in the early 1960s, hespentmuch of his timestudying the elegantnewmodelsofperfectly functioning markets that were all the rage in those days.
Some economists, including PeterDiamond, a Nobel prizewinner from the Massachusetts Institute of Technology, think China should make its peace with this fact.
Economists who specialize in these matters, including Thomas Piketty, Emmanuel Saez, and PeterDiamond, typically argue that a marginal rate around 70 percent maximizes revenue.