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Bankruptcy Rules And Progressive Taxation

Author

Listed:
  • Juan de Dios Moreno Ternero

    (Yale University)

  • Antonio Villar Notario

    (Instituto Valenciano de Investigaciones Económicas)

Abstract

This paper explores the relative progressivity of the main bankruptcy rules in taxation problems. A rule F is more progressive than a rule G when the after-tax income vector generated by F Lorenz dominates that generated by G. We focus our analysis on four classical rules (proportional, equal-awards, equal-losses and Talmud) and on the TAL-family, introduced in Moreno-Ternero & Villar (2002). This family depends on a parameter Theta belongs to [0,1] and encompasses the constrained equal awards rule, the constrained equal losses rules and the Talmud rule.

Suggested Citation

  • Juan de Dios Moreno Ternero & Antonio Villar Notario, 2002. "Bankruptcy Rules And Progressive Taxation," Working Papers. Serie AD 2002-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2002-15
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2002-15.pdf
    File Function: Fisrt version / Primera version, 2002
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    References listed on IDEAS

    as
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    4. Juan Moreno-Ternero & Antonio Villar, 2006. "The TAL-Family of Rules for Bankruptcy Problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 27(2), pages 231-249, October.
    5. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
    6. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
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    10. Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
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    Cited by:

    1. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
    2. Ana Dinis & Cidália Lopes & Alexandre Silva, 2015. "Tax evasion and tax fraud in the bankruptcy process: empirical evidence from Portugal," OBEGEF Working Papers 036, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.

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