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Altruistic parents, who differ in income, make financial transfers to their children, who differ in ability. The … two policy tools: a subsidy to those who participate in education and a proportional income tax. Not all children … participate; a larger subsidy encourages participation, and a larger income tax discourages it. The parents, prior to making …
Persistent link: https://www.econbiz.de/10012771859
This paper studies the design of indirect redistributive taxation and of corrective taxation, as well as the formation of equilibrium indirect tax policies via a political process, in the presence of status goods, allowing for the possibility that illegal copies of those goods may be purchased...
Persistent link: https://www.econbiz.de/10009416119