This article examines empirically the question of whether more unequal societies spend more on income redistribution than their more egalitarian counterparts. Theoretical arguments on this issue are inconclusive. The political economy literature suggests that redistributive spending should be...

This article tests for horizontal tax competition in the value-added tax (VAT) for a sample of Brazilian states in the period 1985-2001. The states have considerable autonomy over the VAT and often use it as an industrial policy tool. The empirical findings, based on the estimation of a tax...