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We consider taxation by a Leviathan government and by a utilitarian government in the presence of heterogeneous locations within a country, when migration from one country to another is and is not possible. In a closed economy, a utilitarian government may transfer income from the poor to the...
Persistent link: https://www.econbiz.de/10011511078
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. The standard theory assumes that more unequal income distribution will create a majority for more redistribution (Meltzer … taxes oriented towards housing. While user charges act as head taxes, property taxes have distributive consequences. The … implies a shift in the tax burden from property taxes to user charges. …
Persistent link: https://www.econbiz.de/10011399685
We construct a general equilibrium trade model of a two-class small open host or source country. When consumption tax revenue finances the provision of a public good, marginal migration reduces social welfare in the source country and raises it in the host. When consumption tax revenue is...
Persistent link: https://www.econbiz.de/10009781628
changes in markups, taxes, factor productivity, and asset prices affect inequality dynamics over the 1984-2018 period. Rising …
Persistent link: https://www.econbiz.de/10013384710
excludable public goods into a model with consumption and income taxes. The setup is a neoclassical growth model where agents … by the Ramsey government not only increases aggregate efficiency, but it also decreases inequality. This result is in … contrast to common view and policy practice. -- user fees ; Ramsey taxation ; efficiency ; inequality …
Persistent link: https://www.econbiz.de/10009571131
services into a tax system with income and consumption taxes. The setup is a neoclassical growth model where agents differ in …
Persistent link: https://www.econbiz.de/10011500172
, we address both efficiency and distribution issues. The focus is on the effects of user prices on individual incentives … and choices. We identify circumstances under which a market system of user prices not only enhances aggregate efficiency …
Persistent link: https://www.econbiz.de/10012319430
Should education be subsidized for the purpose of redistribution? The usual argument against subsidies to education … the absence of a strive for redistribution, the market generates the efficient level of investment in human capital. When … there is a demand for redistribution, the general equilibrium effects on relative wages might make a subsidy to education an …
Persistent link: https://www.econbiz.de/10011400867
occurs since bargaining power is endogenous, and generically causes inefficiency. Interestingly, redistribution arises … decreasing efficiency, which becomes more severe as the centralized budget increases. We also analyze partial ex-ante commitment … through alternative decision-making institutions: Both majority rule and exogenous tax rules can improve efficiency. …
Persistent link: https://www.econbiz.de/10009765517