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Rawlsian governments and the race to the bottom

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Jean-Marie Lozachmeur & Pierre Pestieau & Jon Hamilton, 2002. "Rawlsian governments and the race to the bottom," Economics Bulletin, AccessEcon, vol. 8(2), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-02h20003
    as

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    References listed on IDEAS

    as
    1. Gwenael Piaser, 2003. "Labor Mobility and Income Tax Competition," Public Economics 0302002, University Library of Munich, Germany.
    2. Jonathan Hamilton & Pierre Pestieau, 2005. "Optimal Income Taxation and the Ability Distribution: Implications for Migration Equilibria," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(1), pages 29-45, January.
    3. David E. Wildasin, 1994. "Income Redistribution and Migration," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 637-656, August.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bierbrauer, Felix & Brett, Craig & Weymark, John A., 2013. "Strategic nonlinear income tax competition with perfect labor mobility," Games and Economic Behavior, Elsevier, vol. 82(C), pages 292-311.
    2. Jonathan Hamilton & Pierre Pestieau, 2005. "Optimal Income Taxation and the Ability Distribution: Implications for Migration Equilibria," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(1), pages 29-45, January.
    3. Michel Poitevin, 2018. "Concurrence fiscale et biens publics," CIRANO Project Reports 2018rp-09, CIRANO.
    4. Áron Tóbiás, 2015. "Income Redistribution in Open Economies," CESifo Working Paper Series 5378, CESifo.

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    More about this item

    Keywords

    Income taxation;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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