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The paper studies in a simple, Downsian model of political competition how the private provision of public goods is affected when it is embedded in a system of democracy and redistributive taxation. Results show that the positive effect of inequality on public goods production, which Olson...
Persistent link: https://www.econbiz.de/10013146793
redistribution. While theoretical papers show that income inequality increases redistribution, empirical studies fail to confirm the … the relationship between income inequality and redistribution. This paper also introduces three specifications to … pressure for redistribution, it also increases the incentive to reduce the efficiency of redistribution in order to constrain …
Persistent link: https://www.econbiz.de/10014205343
The numerous studies on preferences for redistribution in recent years offers a wealth of insights into the … market and non-market institutions affects both the demand for redistribution and the choice of the instruments to achieve it … social transfers and unemployment protection are substitutes in the generation of social insurance and redistribution, to …
Persistent link: https://www.econbiz.de/10014068777
private good consumption of the poor. In this context, allowing a small amount of redistribution from the rich to the poor may …
Persistent link: https://www.econbiz.de/10014081067
This paper extends the previous literature on optimal redistributive taxation in the presence of externalities to a multi-externality setting. While taxes on income and on 'clean' commodities are still unaffected by the externalities, which confirms previous results, I find that the existence of...
Persistent link: https://www.econbiz.de/10011344848
This paper studies the implications of (endogenously) directed technical change for the design of non-linear labor income taxes in a Mirrleesian economy augmented to include endogenous technology development and adoption choices by firms. First, I identify conditions under which any progressive...
Persistent link: https://www.econbiz.de/10012431526
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...
Persistent link: https://www.econbiz.de/10010403177
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...
Persistent link: https://www.econbiz.de/10010412846
We characterize the second-best allocation in a Mirrleesian optimal tax model where agents differ in multiple dimensions and the planner can tax multiple goods non-linearly. We develop a new method that allows us to solve the partial differential equations that describe the optimum regardless of...
Persistent link: https://www.econbiz.de/10011588055
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...
Persistent link: https://www.econbiz.de/10012162503