This paper reconsiders the classical problem of majority voting over tax schedules, adding the possibility to avoid taxes. In this setting preferences over tax schedules are not determined by earned income, but rather by taxable income, which depends on the joint decisions of labor supply and...

This chapter reviews the theory of the voluntary public and private redistribution of wealth elaborated by economic analysis in the last forty years or so. The central object of the theory is altruistic gift-giving, construed as benevolent voluntary redistribution of income or wealth. The theory...

The effect of a widening of the distribution of income upon society's choice of the amount of redistribution is a balancing of two opposing forces: the increase in redistribution in response to the increased ratio of mean to median income and the decrease in response to the greater advertising...

In this paper I present a model in which an increase in inequality can lead to a decrease in voters' demand for redistribution. In my model, people sort into groups according to income and as a result they become biased about the shape of the income distribution. I demonstrate that an increase...

Using new cross-country survey and experimental data, we investigate if it is possible to increase people's support for the national government to address inequality through redistribution by providing them with information about inequality and social mobility in their country. We test this by...

Attitudes towards fairness and redistribution differ along socio-economic lines, resulting in political conflict. To understand the formation of such views and find levers to affect them, we study the role of attention. In a large online experiment, we investigate how subjects allocate their...

People with higher-incomes tend to support less redistribution than lower-income people. This has been attributed not only to self-interest, but also to psychological mechanisms including differing beliefs about the hard work or luck underlying inequality, differing fairness views, and differing...

This paper focuses on the study of the effects on social welfare generated by the scheme of joint taxation of the Spanish Personal Income Tax (PIT), whose peculiarity linked to its condition of optionality, allows the minimization of households´ tax bill. Different scenarios are simulated using...

This paper analyses the effect of wealth inequality on UK economic growth in recent decades with a heterogeneous-agent growth model where agents can enhance individual productivity growth by undertaking entrepreneurship. The model assumes wealthy people are more able to afford the costs of...