This paper estimates the marginal efficiency cost of redistribution (MECR) associated with a demogrant and an in … the demogrant. The efficiency loss associated with a marginal in-work benefit has consistently been low (and occasionally … redistribution within family types. The inwork benefit policy looks even more favourable if paid to (and financed by) only singles …

monotonicity. Efficiency: redistribution has no cost. Symmetry: members of the society with the same performance obtain the same …Within a simple setup, we show that proportional taxation is implied by three properties: efficiency, symmetry, and … reward after redistribution. Monotonicity: whenever both the performance of a certain member of the society as well as the …

unstructured bargaining gives an inefficient result. We find, however, that efficiency is achieved with fully homogenous countries …, and when countries have similar incomes and the union budget is small. Moreover, some redistribution arises endogenously …, entails a trade-off between equality and efficiency. We also analyze alternative institutions and find that majority rule can …

gives an inefficient result in the presence of income asymmetry between member nations. Interestingly, redistribution arises … decreasing efficiency, which becomes more severe as the centralized budget increases. We also analyze partial ex-ante commitment … through alternative decision-making institutions: Both majority rule and exogenous tax rules can improve efficiency. …

economic wealth even though the individual might not take any advantage of this. The reason for charging higher taxes on "the … employment. Therefore, not the capital stock, but the consumption of capital should be charged with taxes. …