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This paper studies the effects of progressive income taxes and education finance in a dynamic heterogeneous agent economy. Such redistributive policies entail distortions to labour supply and savings, but also serve as partial substitutes for missing credit and insurance markets. The resulting...
Persistent link: https://www.econbiz.de/10005124288
I develop a model of (individually rational) collective reality denial in groups, organizations and markets. Whether participants' tendencies toward wishful thinking reinforce or dampen each other is shown to hinge on a simple and novel mechanism. When an agent can expect to benefit from other's...
Persistent link: https://www.econbiz.de/10005666620
We analyze the offering, asking, and granting of help or other benefits as a three-stage game with bilateral private information between a person in need of help and a potential help-giver. Asking entails the risk of rejection, which can be painful: since unawareness of the need can no longer be...
Persistent link: https://www.econbiz.de/10013388842
a series of experiments, we investigate the overall prevalence and the consistency of consequentialist and deontological …
Persistent link: https://www.econbiz.de/10014468273
a series of experiments, we investigate the overall prevalence and the consistency of consequentialist and deontological …
Persistent link: https://www.econbiz.de/10014461859
Persistent link: https://www.econbiz.de/10013423083
, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …
Persistent link: https://www.econbiz.de/10011083769
or societal laws benefiting religious citizens. Rising income inequality can, however, lead some of the rich to form a …
Persistent link: https://www.econbiz.de/10011262883
systems of education finance and health insurance. With imperfect credit and insurance markets some redistributive policies … redistributions decreases with the degree of inequality, at least over some range. Moreover, capital market imperfections make future … high inequality and low redistribution, or vice versa. Temporary shocks to the distribution of income or the political …
Persistent link: https://www.econbiz.de/10005792191
’ rent-seeking abilities, as well as with the gap between rich and poor. It is not income inequality per se that matters …, however, but inequality in the relative distribution of earning and political power. For each of the three channels of …-country differences in inequality permanent, or gradually narrowing? Equivalently, is there convergence not just in the first moment of …
Persistent link: https://www.econbiz.de/10005123982