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and third best arguments), we need a theory of inefficient decisions by policy makers. Therefore the following questions … where the policy decisions are a reform and a compensating taxation. The main feature of the reform is that it creates … gainers and losers. Redistributive taxation can be used to compensate losers. Formally, the relationship between the citizens …
Persistent link: https://www.econbiz.de/10005489938
Persistent link: https://www.econbiz.de/10011091655
This paper explores the nexus between the phenomenon of increasing income inequality and redistributive effects of the public sector. In an empirical analysis of seven OECD countries the redistributive effect will be examined by measuring the difference between inequality of market incomes and...
Persistent link: https://www.econbiz.de/10010955095
income taxation and public good provision, when people care about their relative consumption compared to others. In each case …
Persistent link: https://www.econbiz.de/10005198004
Previous studies on public policy under relative consumption concerns have ignored the role of leisure comparisons. This paper considers a two-type optimal nonlinear income tax model where people care both about their relative consumption and their relative leisure. Increased consumption...
Persistent link: https://www.econbiz.de/10005771203
Almost all previous studies on public policy under relative consumption concerns have ignored the role of leisure for status comparisons. Inspired by Veblen (1899), this paper considers a two-type optimal income tax model, where people care about their relative consumption, and where the...
Persistent link: https://www.econbiz.de/10008490333
The relationship between inequality and redistribution is usually studied under the assumption that the government …
Persistent link: https://www.econbiz.de/10005125075
Previous studies on public policy under relative consumption concerns have ignored the role of leisure comparisons. This paper considers a two-type optimal nonlinear income tax model where people care both about their relative consumption and their relative leisure. Increased consumption...
Persistent link: https://www.econbiz.de/10005012479
Almost all previous studies on public policy under relative consumption concerns have ignored the role of leisure for status comparisons. Inspired by Veblen (1899), this paper considers a two-type optimal income tax model, where people care about their relative consumption, and where the...
Persistent link: https://www.econbiz.de/10008483932
We study the political economy of state limitations on the taxing powers of local governments, investigating the effects of such restriction on housing markets, community composition, and types of taxes and expenditures undertaken by local governments. We characterize equilibrium when voters...
Persistent link: https://www.econbiz.de/10008565926