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Should two-band income taxes be progressive given a general income distribution? We provide a negative answer under utilitarian and max-min welfare functions. While this result clarifies some ambiguities in the literature, it does not rule out progressive taxes in general. If we maximize total...
Persistent link: https://www.econbiz.de/10003845516
We compare two systems of income redistribution: unemployment benefits (UB) and basic income (BI). First, for a simple utility function, with both intensive and extensive margins, the unemployed are likely better off with pure BI than pure UB, regardless of labour supply elasticity and wage...
Persistent link: https://www.econbiz.de/10009153046
In a model with heterogeneous workers and both intensive and extensive margins of employment, we consider two systems of redistribution: a universal basic income, and a categorical unemployment benefit. Well-being depends on own-consumption relative to average employed workers' consumption, and...
Persistent link: https://www.econbiz.de/10009153609
Rising fuel subsidies have contributed to fiscal pressures in India. A key policy concern regarding subsidy reform is the adverse welfare impact on households, in particular poor households. This paper evaluates the fiscal and welfare implications of fuel subsidy reform in India. Fuel subsidies...
Persistent link: https://www.econbiz.de/10013080453
The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With flexible labor markets, a fall in foreign market entry cost tends to generate more income inequality. By contrast, when workers cannot easily switch industries and wages are...
Persistent link: https://www.econbiz.de/10013317073
Theory suggests that large firms are more likely to engage in lobbying behaviour and are geographically more mobile than smaller entities. Conditional on jurisdiction size, policy choices are thus predicted to depend on the shape of a jurisdiction's firm size distribution, with more...
Persistent link: https://www.econbiz.de/10012921204
This paper argues that the large reduction in corporate tax rates and only gradual widening of tax bases in many countries over the last decades are consistent with tougher international competition for foreign direct investment (FDI). To make this point we develop a model in which governments...
Persistent link: https://www.econbiz.de/10013119836
Utilitarianism is the most prominent family of social welfare functions. We present three new axiomatic ….'s (1998) Expected Critical-Level Generalized Utilitarianism (ECLGU) is equivalent to a new axiom holding that it is better to … novel characterizations extend classic axiomatizations of utilitarianism from settings with either social risk or variable …
Persistent link: https://www.econbiz.de/10012583668
of benefit-cost analysis, utilitarianism, and prioritarianism in evaluating COVID-19-related policies. The relative … less aggressive control policies. Utilitarianism and prioritarianism, in that order, increasingly favor income … likely than utilitarianism or benefit-cost analysis to target young and socioeconomically disadvantaged individuals in the …
Persistent link: https://www.econbiz.de/10012486386
A long-standing challenge for welfare economics is to develop welfare criteria that can be applied to allocations with different population levels. Such a criterion is essential to resolve the optimal population problem, i.e., the tradeoff between population size and the welfare of each person...
Persistent link: https://www.econbiz.de/10012493350