We establish the precise connections between progressive taxation andinequality reduction, in a setting where the level of tax revenue to be raised isendogenously fixed and tax schemes are balanced. We show that, in contrastwith the traditional literature on taxation, the equivalence between...

In n-agent exchange economies, we show that all efficient and continuous rules are "diagonally dictatorial" over the restricted domain of linear preferences and, in the 2-good case, over the domain of homothetic preferences. The diagonal dictator receives the entire endowment whenever all agents...