Großer, Jens; Reuben, Ernesto - In: Journal of Public Economics 101 (2013) C, pp. 39-52
We study the interaction between competitive markets and income redistribution that reallocates unequal pre-tax market incomes away from the rich to the poor majority. In one setup, participants earn their income by trading in a double auction (DA) with exogenous zero or full redistribution. In...