Selection Filters, Redistributive Taxation and Overconfidence
AbstractEducation can be a filter that solves an assignment problem. We consider what this implies for redistributive taxation in the political process. First we assume that all individuals have undistorted expectations about their abilities. Then we analyse populations in which some group of workers is overly confident. The overconfident are more successful, but enjoy lower utility. Just confident workers benefit from overly confident workers. Also, the preferences of just confident workers for redistribution do not necessarily exceed those of overconfident workers.
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Bibliographic InfoPaper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2003-22.
Date of creation: 2003
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-11-09 (All new papers)
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