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This paper compares the poverty reduction impact of income sources, taxes and transfers across five OECD countries. Since the estimation of that impact can depend on the order in which the various income sources are introduced into the analysis, it is done by using the Shapley value. Estimates...
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-seeking preferences justify heavier taxation of income because this serves to internalise the negative externality that the pursuit of … function in such a model, and discuss potential implications for optimal income taxation. …
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