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Leaky-bucket transactions can be regarded as income transfers allowing for transaction costs. In its most rudimentary form, leaky-bucket transactions trace out the maximum leakageʺ of transaction costs before income inequality is exacerbated, or before a welfare loss is experienced. This notion...
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this generalized theory of the transfer principle is as poorly evidenced as is the plain transfer principle. This applies … sometimes according to theory. The rest seems to follow some notion of compensating justice: If someone loses (gains) income … inequality. This behavioral pattern is, however, at variance with theory. …
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