Designing Taxes with Migration.
This paper analyzes the design of optimal taxes in less developed countries that suffer from excess rural-urban migration and reports results from a numerical model. These results illustrate the importance of both restrictions on the government's tax powers and the nature of the migration process in determining the optimal pattern of taxation. They also demonstrate that, under a very wide variety of circumstances, the existence of a fixed wage in the urban area makes wage subsidies desirable even if they have to be financed by taxes on the poorest sections of society. Copyright 1987 by Royal Economic Society.
Year of publication: |
1987
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Authors: | Heady, Christopher |
Published in: |
Economic Journal. - Royal Economic Society - RES, ISSN 1468-0297. - Vol. 97.1987, 388a, p. 87-98
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Publisher: |
Royal Economic Society - RES |
Saved in:
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