This paper examines the allocative implications of progressive income taxation when individuals care about their relative income. It shows that tax progressivity might improve efficiency, and the more so in egalitarian economies. Introducing a progressive income tax can yield a Pareto...

This paper studies whether limited information about inequality accounts for the (optimistic) beliefs and the (anti-tax) preferences of American voters. Unlike standard surveys, this experiment examines preferences for taxation while controlling for perceived economic opportunity, beliefs about...