We show that the leveling tax-transfer policy is the only consistent policy that exploits the maximum allowed transfers, as long as these are no more than the amount sufficient to equalize after-tax incomes. The leveling policy stands in contrast to equal sacrifice policies, which are also consistent but do not conduct any transfers.
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Length: 11 pages Date of creation: Feb 2008 Date of revision: Handle: RePEc:nid:ndagan:020
Contact details of provider: Postal: Nir Dagan, Dept. of Economics and Management, Tel-Hai Academic College, Upper Galilee, Israel. Web page: http://www.nirdagan.com/research/
For technical questions regarding this item, or to correct its listing, contact: (Nir Dagan).
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Find related papers by JEL classification: D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
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