gravity (non-gravity trade) and the distribution of income within countries. In countries where only a small share of the … population are educated, an increase in non-gravity trade is associated with a significant increase in income inequality. As … education of the population increases the correlation between non-gravity trade and income inequality becomes smaller. Non …

This paper examines the allocative implications of progressive income taxation when individuals care about their … relative income. It shows that tax progressivity might improve efficiency, and the more so in egalitarian economies …. Introducing a progressive income tax can yield a Pareto improvement if pre-tax income is evenly distributed. Implementing …