Redistribution, Taxes, and the Median Voter
We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the policy is infinite-dimensional, we prove that a median voter theorem holds if households have identical, Gorman aggregable preferences; furthermore, the tax policy preferred by the median voter has the "bang-bang" property
|Date of creation:||03 Dec 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA|
Web page: http://www.EconomicDynamics.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- V. V. Chari & Patrick J. Kehoe, 1998.
"Optimal fiscal and monetary policy,"
251, Federal Reserve Bank of Minneapolis.
- Chamley, Christophe, 1986. "Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives," Econometrica, Econometric Society, vol. 54(3), pages 607-22, May.
- Benhabib, J. & Rustichini, A., 1996.
"Optimal Taxes Without Commitment,"
96-18, C.V. Starr Center for Applied Economics, New York University.
- Adam Przeworski & Jess Benhabib, 2004.
"The Political Economy of Redistribution under Democracy,"
2004 Meeting Papers
58, Society for Economic Dynamics.
- Jess Benhabib & Adam Przeworski, 2006. "The political economy of redistribution under democracy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(2), pages 271-290, October.
- William Jack & Roger Lagunoff, 2003.
gueconwpa~03-03-03, Georgetown University, Department of Economics.
- William Jack & Roger Lagunoff, 2003. "Dynamic Enfranchisement," Levine's Bibliography 666156000000000030, UCLA Department of Economics.
- Roger Lagunoff & William Jack, 2004. "Dynamic Enfranchisement," 2004 Meeting Papers 466, Society for Economic Dynamics.
- William Jack & Roger Lagunoff, 2003. "Dynamic Enfranchisement," Public Economics 0306002, EconWPA, revised 01 Jul 2003.
- Roger Lagunoff & William Jack, 2004. "Dynamic Enfranchisement," Econometric Society 2004 North American Summer Meetings 24, Econometric Society.
- William Jack & Roger Lagunoff, 2003. "Dynamic Enfranchisement," Wallis Working Papers WP36, University of Rochester - Wallis Institute of Political Economy.
- Kenneth L. Judd, 1982.
"Redistributive Taxation in a Simple Perfect Foresight Model,"
572, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Judd, Kenneth L., 1985. "Redistributive taxation in a simple perfect foresight model," Journal of Public Economics, Elsevier, vol. 28(1), pages 59-83, October.
- Gans, Joshua S. & Smart, Michael, 1996. "Majority voting with single-crossing preferences," Journal of Public Economics, Elsevier, vol. 59(2), pages 219-237, February.
- Marco Bassetto, 2002.
"Equilibrium and government commitment,"
624, Federal Reserve Bank of Minneapolis.
- Chamley, Christophe, 1985. "Efficient Taxation in a Stylized Model of Intertemporal General Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(2), pages 451-68, June.
- Robert A. Pollak, 1971. "Additive Utility Functions and Linear Engel Curves," Review of Economic Studies, Oxford University Press, vol. 38(4), pages 401-414.
- Rothstein, Paul, 1991. "Representative Voter Theorems," Public Choice, Springer, vol. 72(2-3), pages 193-212, December.
- Andrew Atkeson & V. V. Chari & Patrick J. Kehoe, 1999. "Taxing capital income: a bad idea," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sum, pages 3-17.
When requesting a correction, please mention this item's handle: RePEc:red:sed006:78. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann)
If references are entirely missing, you can add them using this form.