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This paper shows that peer pressure may lead to dynamic convergence to a norm that is skewed with respect to preferences in society, yet is endogenously upheld by the population. Moreover, a skewed norm will often be more sustainable than a representative norm. This may explain the skewness of...
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Increased tax progressivity raises the elasticity of labour demand with respect to consumer wages which implies that … labour unions subtitute wages with employment. This paper investigates the effects to tax prograssivity on wages using …
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