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Capital taxation and electoral accountability

  • Aidt, Toke S.
  • Magris, Francesco

This paper investigates the role of performance voting in solving the capital levy problem. In a representative democracy, voters can use elections to protect their property by holding politicians accountable for the tax policies they implement. We characterize the set of tax policies that can be sustained by symmetric performance standards and show when this set contains the second best (Ramsey) tax policy.

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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 22 (2006)
Issue (Month): 2 (June)
Pages: 277-291

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Handle: RePEc:eee:poleco:v:22:y:2006:i:2:p:277-291
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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