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We derive conditions of individual preferences and technology that give rise to a negative correlation between income inequality and environmental protection. We present a class of models (which captures a static model as well as an overlapping-generations model) in which individuals differ in...
Persistent link: https://www.econbiz.de/10005662063
when old. Externalities are caused by a polluting factor. The revenue from pollution taxation, as well as capital …-income taxation, is redistributed in a lump-sum to the old. A majority-elected representative takes the fiscal decision, at each point …
Persistent link: https://www.econbiz.de/10005791379
with a range of political economy outcomes -- civil conflict, redistribution, economic growth and the provision of public …, originating thousands of years ago, lead to measures of diversity that are better predictors of civil conflict and redistribution …
Persistent link: https://www.econbiz.de/10008566319
This Paper studies the design of education policies in a setting of successive generations with heterogeneous individuals (high and low earning ability). Parents’ investment in education is motivated by warm-glow altruism and determines the probability that a child has high ability. Education...
Persistent link: https://www.econbiz.de/10005498169
redistribution results in more post-tax inequality. In general, optimal taxation will either imply that the redistribution paradox is …, evaluating redistributive equilibria from an allocative point of view. It studies the problem of optimal redistributive taxation …
Persistent link: https://www.econbiz.de/10005067443
This proposal involves the establishment of ‘welfare accounts’ for every person in a country. There are four accounts: a retirement account (covering pensions), an unemployment account (covering unemployment support), a human capital account (covering education and training), and a health...
Persistent link: https://www.econbiz.de/10005661484
insurance is financed through distortionary taxation and redistributes across income and risk. Individuals vote on social … outcome is affected by electoral uncertainty, distortions from taxation, risk aversion and the distribution of risk and income … insurance is affected by the possibility to redistribute through income taxation. …
Persistent link: https://www.econbiz.de/10005661634
This Paper starts from the result of Rochet (1989), that with distortionary income taxes social insurance is a desirable redistributive device when risk and ability are negatively correlated. This finding is re-examined when ex post moral hazard and adverse selection are included, and under...
Persistent link: https://www.econbiz.de/10005791462
If redistribution is distortionary, and if the income of skilled workers is due to knowledge-intensive activities and … reduction reduces statis inefficiency. On the other hand, standard redistribution also reduces the level of R&D because it … that standard redistribution always dominates limitations to IPRs. …
Persistent link: https://www.econbiz.de/10005791837
It is a constant topic of debate how the European Union (EU) spends the money it collects from its member states. This paper supports the idea that the EU budget battle involves one-shot games that have persistent impacts on the budget allocations. In one way or the other, the member states are...
Persistent link: https://www.econbiz.de/10004972167