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We explore the welfare consequences of different taxation schemes in an economy where agents are debt-constrained. If agents default on their debt, they are banned from future credit markets, but retain their private endowments which are subject to income taxation. A change in the tax system...
Persistent link: https://www.econbiz.de/10014215741
literature is that redistribution is best done centrally, and thus that an income tax is best used by the federal government …, rather than by state governments. Yet recent work suggests that states can effectively have some role in redistribution … a tool of greater redistribution. At the same time, the insurance function of a progressive income tax can still be …
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step, we focus on how risk exposure and income are related to preferences for redistribution. To test our hypotheses, we … redistribution. Institutions, we argue, mediate governments' reactions to redistributional demands following economic shocks. Using …
Persistent link: https://www.econbiz.de/10012716908
on how risk exposure and income are related to preferences for redistribution. To test our hypotheses, we extract … turn our attention to the supply side of government redistribution. Institutions, we argue, mediate governments' reactions …
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This study examines the relationships between democratic politics and systematic (or country-specific) financial risk. Low financial risk is crucial to any well-functioning economy, as it encourages capital investment, facilitates growth, and enhances overall economic performance. Up until now,...
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