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majority in democracies may not support massive redistribution for the sake of their children’s educational attainment and … children respond negatively to the extent of redistribution, and parental altruism discourages poor voters from expropriating …
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This chapter reviews recent theoretical work on the effect of factor mobility and the ensuing tax competition on the capacity of governments to raise revenue and redistribute income. It focuses on three issues: the relevance and limitations of the race to the bottom result, the benefits and...
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