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their effort, it will chose low redistribution and low taxes. In equilibrium effort will be high, the role of luck limited …
Persistent link: https://www.econbiz.de/10013134300
Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a plausible parameterization using data on height and wages implies a substantial height tax: a tall...
Persistent link: https://www.econbiz.de/10013134658
efficiency losses without achieving any net redistribution of income …
Persistent link: https://www.econbiz.de/10013139299
so, they are effectively accepting a certain amount of politician (presidential) rents in return for redistribution. We … influence or bribe politicians, and when inequality and potential taxes are high (which makes redistribution more valuable to …
Persistent link: https://www.econbiz.de/10013121590
Why do low-income individuals often oppose redistribution? We hypothesize that an aversion to being in "last place …" undercuts support for redistribution, with low-income individuals punishing those slightly below themselves to keep someone …
Persistent link: https://www.econbiz.de/10013122222
This paper studies the optimal redistribution of income inequality in a model with search and matching frictions in the … workers and heterogeneous firms. The optimal redistribution in this model, which is associated with the constrained efficient …
Persistent link: https://www.econbiz.de/10013105002
Various authors, notably Eaton and Rosen (1980a) and Varian (1980), have proposed that income taxation may be justified to some extent on the ground that it serves as social insurance against uncertainties in labor income. They assume that private insurance is unavailable. primarily because of...
Persistent link: https://www.econbiz.de/10013069377
Uncertainty and its composition can affect the demand for social insurance, and thereby the labor market. This paper shows that small to medium-sized increases in uncertainty or risk aversion are enough to recommend an expansion of the safety net that would be broadly similar to the actual...
Persistent link: https://www.econbiz.de/10013074281
The political left turn in Latin America, which lagged its transition to liberalized market economies by a decade or more, challenges conventional economic explanations of voting behavior. This paper generalizes the forward-looking voter model to a broad range of dynamic, non-concave income...
Persistent link: https://www.econbiz.de/10013074913
, heterogeneous agents, and aggregate shocks. The planner's concerns about redistribution impart a welfare cost to fluctuating …
Persistent link: https://www.econbiz.de/10013075423