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We study fair and efficient tax-benefit schemes based on income and non-income factors under partial control. Partial control means that each factor is a specific mixture of unobserved ability (randomly drawn by nature) and effort (chosen by individuals who differ in tastes). Factors differ in...
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redistribution. The government of a two-party democracy is elected by altruistic voters and decides on a redistributive income tax … levels of redistribution and tax rates in the political equilibrium: (i) in-group altruism of the rich voters|which we refer …
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