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Despite a strong theoretical prediction that income skewness and redistribution should be positively linked, empirical … skewness. Under imperfect information, these developments affect redistribution in different ways. While rising polarization … increases redistribution, upward mobility can have the opposite effect. Reasonable degrees of informational imperfection are …
Persistent link: https://www.econbiz.de/10008691997
The main question addressed in this paper is how the possibility of investing in tax avoidance affects voting and … redistributive outcomes in an economy where the tax rate is determined by a majority vote and taxes go to lump-sum redistribution …
Persistent link: https://www.econbiz.de/10005190654
Welfare-state measures often tend to persist even when they seem to have become suboptimal due to changes in the economic environment. This paper proposes an information-based explanation for the persistence of the welfare state. I present a structural model where rationally inattentive voters...
Persistent link: https://www.econbiz.de/10008691987
redistribution policies. The interaction of the two e¤ects has so far not been analyzed in isolation. We find that the direction of … redistribution levels. …
Persistent link: https://www.econbiz.de/10005518257
A benchmark result in the political economy of taxation is that the degree of redistribution is positively linked to … enforcement, we show that higher inequality may well decrease the extent of redistribution, depending on two opposing effects: the …
Persistent link: https://www.econbiz.de/10011109385
informed than others. We develop a model where the voting mistakes resulting from low political knowledge reduce the weight of …. In US election survey data, we nd that income is more important in a ecting voting behavior for more informed voters than …
Persistent link: https://www.econbiz.de/10010785526
I propose a framework in which individual political participation can take two distinct forms, voting and contributing … recognized by all agents. I then use the framework to reassess the relationship between inequality and redistribution. The model … shows that, even though each contribution has a negligible impact, the interaction between contributions and voting leads to …
Persistent link: https://www.econbiz.de/10010574319
We endow individuals that differ in skill levels and tastes for working with altruistic preferences for redistribution … in a voting model where a unidimensional redistributive parameter is chosen by majority voting in a direct democracy … the lazy, we show that lower levels of redistribution emerge in political equilibrium. We provide empirical evidence …
Persistent link: https://www.econbiz.de/10005043686
This paper surveys models of voting on redistribution. Under reasonable assumptions, the baseline model produces an …, redistribution is from rich to poor. Increasing inequality increases redistribution. However, under different assumptions about the … economic environment, redistribution may not be simply rich to poor, and inequality need not increase redistribution. Several …
Persistent link: https://www.econbiz.de/10004963760
This paper analyzes voting on a linear income tax which is redistributed lump sum to the taxpayers. Individuals can …
Persistent link: https://www.econbiz.de/10004963776