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payment. We find that the consumers exhibit considerable fairness towards the workers by buying from the firm with the higher … average wages despite its significant crowding-out effects on consumers' fairness concerns. Abolishing a minimum wage crowds … in consumers' fairness concerns, but crowding in is not sufficient to avoid overall negative effects on the workers …
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Using a collective model of consumption, we characterize optimal commodity taxes aimed at targeting specific individuals within the household. The main message is that distortionary indirect taxation can circumvent the agency problem of the household. Essentially, taxation should discourage less...
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