relies on the fact that tax evasion is more prevalent in the non-traded sector, which is dominated by services and the self …-employed. Heavy reliance on tax-based fiscal consolidations induces a reallocation of economic activity towards the non-traded sector …. Using IMF data for the period 1980-2011 we find that budget consolidations which rely more on tax increases than on spending …

subsidies guaranteeing the same (pre-tax) level of income (achieved by the government supplementing the wage income of workers … receive political support unless it is supplemented by increased taxation of profits (after-tax profits are also likely to …

“blunt instrument” for redistribution. To do so we build a model in which workers are heterogeneous in ability, and the … government engages in redistribution through the public provision of private goods. We show that the MW institution is … politically viable only when there is a limited degree of in-kind redistribution. To examine the empirical relevance of our …

The relationship between inequality and redistribution is usually studied under the assumption that the government …

The relationship between inequality and redistribution is usually studied under the assumption that the government … competitive and monopolistic settings. We find that the presence of monopoly results in a higher tax rate than in the competitive … case and that in the latter case an increase in inequality can be associated with a fall in the tax rate. We find also that …