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This paper studies the design of tax systems that implement a planner's second-best allocation in a market economy. An example shows that the widely used Mirrleesian (1976) tax system cannot implement all incentive-compatible allocations. Hammond's (1979) "principle of taxation" proves that any...
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We conduct a laboratory experiment to study how demand for redistribution of income depends on self-interest, insurance … is affected by redistribution. We estimate utility weights for the different sources of demand for redistribution, with …
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in fiscal redistribution across modern welfare states. Contrary to the assertion that there is robust evidence in support … than earnings) is positively associated with fiscal redistribution. In sum, revisiting an influential contribution to the … literature offers no support for the proposition that the structure of inequality has consequences for fiscal redistribution. …
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unselfish though rational demand for redistribution. This leads the well off to prefer higher taxes and the poor to reject … redistribution by individuals with high income and to a lower demand for redistribution by those with low income. …
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efficient allocations and derive conditions under which there is predistribution, i.e., redistribution through wage compression …
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