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redistribution in democratic societies. An infinite-horizon theoretical model is developed, and the properties of the equilibrium tax … experiment is conducted to test the main comparative static predictions of the theory, and the results are generally supportive …
Persistent link: https://www.econbiz.de/10012455921
A substantial literature addresses the design of transfer programs and policies, including the negative income tax, other means-tested transfers, the earned income tax credit, categorical assistance, and work inducements. This work is largely independent of that on the optimal nonlinear income...
Persistent link: https://www.econbiz.de/10012466384
This paper argues that the social nature of humans, absent from the standard economic model, is crucial to understand our large modern social states and why concerns about inequality are so pervasive. A social solution arises when a situation is resolved at the group level (rather than the...
Persistent link: https://www.econbiz.de/10012482605
redistribution. We study the dynamic evolution of different economies in which redistributive policies, perceptions of fairness … inequality, redistribution and growth. We also show how different beliefs about fairness can keep two otherwise identical …
Persistent link: https://www.econbiz.de/10012463062
This paper considers the optimal tax treatment of voluntary transfers to individuals in a" framework that integrates redistributive income taxation and estate and gift taxation. Under this" formulation, redistributive considerations become secondary. The optimal tax treatment of" transfers...
Persistent link: https://www.econbiz.de/10012471814
reward subjects vote in favor of greater redistribution when a very small fraction of high-effort individuals is added to a … causes the most generous rich subjects to vote for less redistribution. These results suggest that anecdotes about the … deservedness of a small group of transfer recipients may be effective in changing support for redistribution. We find large gender …
Persistent link: https://www.econbiz.de/10012453101
costs and benefits of redistribution are generally of the same order of magnitude, resulting in reasonable values for the …
Persistent link: https://www.econbiz.de/10012471662
Should a nation's tax system become more progressive as it opens to trade? Does opening to trade change the benefits of a progressive tax system? We answer these question within a standard incomplete markets model with frictional labor markets and Ricardian trade. Consistent with empirical...
Persistent link: https://www.econbiz.de/10012452938
This paper discusses what determines the preferences of individuals for redistribution. We review the theoretical …
Persistent link: https://www.econbiz.de/10012463822
In this paper we revisit the relationship between democracy, redistribution and inequality. We first explain the … theoretical reasons why democracy is expected to increase redistribution and reduce inequality, and why this expectation may fail … broadly consistent with a view that is different from the traditional median voter model of democratic redistribution …
Persistent link: https://www.econbiz.de/10012458917