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Rawlsian governments and the race to the bottom

  • Jean-Marie Lozachmeur

    ()

    (CREPP Université de Liège and CORE)

  • Pierre Pestieau

    ()

    (CREPP Université de Liège, CORE, DELTA and CEPR)

  • Jon Hamilton

    ()

    (Department of Economics, University of Florida)

This paper argues that there is no race to the bottom when the social planner adopts a Rawlsian criterion, only the poor are mobile and they do not work at the optimal tax outcome. This argument is developed within a two skill-model of optimal income taxation.

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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 8 (2002)
Issue (Month): 2 ()
Pages: 1-6

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Handle: RePEc:ebl:ecbull:eb-02h20003
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  1. PIASER, Gwenaël, 2003. "Labor mobility and income tax competition," CORE Discussion Papers 2003006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Gahvari, Firouz, 1989. "The nature of government expenditures and the shape of the laffer curve," Journal of Public Economics, Elsevier, vol. 40(2), pages 251-260, November.
  3. Wildasin, D.E., 1992. "Income Restribution and Migration," Papers 92-003, Indiana - Center for Econometric Model Research.
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