Authors Emmanuel Farhi and Xavier Gabaix examine the implications of mental accounting for taxation in their paper: "Optimal Taxation with Behavioral Insights". The authors main goal is to revisit the three pillars of optimal taxation, and add a behavioral twist to them which tries to incorporate mental accounting (as well as misperceptions and internalities). They reach a number of novel economic insights, showing how to incorporate nudges in the optimal taxation frameworks, and challenging the Diamond-Mirrlees productive efficiency result and the Atkinson-Stiglitz uniform commodity taxation proposition, finding they are more likely to fail with behavioral agents.