Redistribution, taxes, and the median voter
AbstractWe study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the policy is infinite-dimensional, we prove that a median voter theorem holds if households have identical, Gorman aggregable preferences; furthermore, the tax policy preferred by the median voter has the “bang- bang” property.
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Date of creation: 2006
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Other versions of this item:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-01 (All new papers)
- NEP-CDM-2006-04-01 (Collective Decision-Making)
- NEP-PBE-2006-04-01 (Public Economics)
- NEP-POL-2006-04-01 (Positive Political Economics)
- NEP-PUB-2006-04-01 (Public Finance)
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