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We consider three transfer models with a representative individual who discounts the utility of the merit good with respect to the standard one's. In each model, a paternalistic government taxes the consumer and transfers him additional merit goods in return. The private purchase of the merit...
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Korpi and Palme's (1998) classic "The Paradox of Redistribution and Strategies of Equality" claims that universal … preferences for redistribution. We analyze rich democracies like Korpi and Palme, but we also generalize to a broader sample of … share and universalism; (2) redistribution preferences are negatively associated with low-income targeting; and (3 …
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We show how normative standpoints determine optimal taxation of wealth. Since wealth is not equal to capital, we find very different welfare implications of land rent-, bequest- and capital taxation. It is mainly land rents that should be taxed. We develop an overlapping generations model with...
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