Ramsey's paper "A Contribution to Tax Theory" actually created and laid the foundation of modern tax theory, but it was ignored by western academic circles and governments for a long time in the 1930s and 1970s. From 65438 to 0970, baumol focused on the pricing of industries with significant economies of scale, which brought this paper back to the field of vision. In 197 1 year, Demol Mon James Mirrlees jointly published two papers in the American Economic Review, namely, "Optimal Taxation and Public Production I: Effectiveness of Production and Optimal Taxation and Public Production II: Tax Rules" (these two papers were published at the same time, so they became the founders of incentive theory in 20 10/year respectively.