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redistribution from the rich to the poor will improve social welfare, regardless of how small inequality is in the status quo …
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redistribution from the rich to the poor will improve social welfare, regardless of how small inequality is in the status quo …
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We introduce tax competition for mobile labor into an optimal-taxation model with two skill levels. We analyze a symmetric subgame-perfect Nash equilibrium of the game between two governments and two taxpayer populations. Tax competition reduces the distortion from the informational asymmetry...
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