The author develops a simple model in which individuals migrate freely among regions. In each region there is a majority voting procedure that determines a proportional taxation on earnings which finances a uniform transfer for each of the agents. Equilibrium requires that no one wishes to migrate and that the taxation policy be the result of majority voting in each region.
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Paper provided by Valencia - Instituto de Investigaciones Economicas in its series Papers with number
99-09.
Find related papers by JEL classification: H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
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