The authors investigate the desirability of income taxes when the objective is to mitigate wasteful conspicuous … income distribution matters) inequality and taxation are substitutes. Instead, when status is cardinal (i.e., also the shape … of the income distribution matters) inequality and taxation can be complements, although the relationship is in general …

ethnically diverse neighbourhoods being in the lowest income categories but higher probabilities of being in medium and higher … income categories. The largest effects are the reduced probabilities of respondents reporting no income, and are thus … particularly relevant to poverty reduction. At the limit, their estimates imply an income gap of more than 20 per cent between a …