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REDISTRIBUTIVE TAXATION WITHOUT EXCESS BURDEN *
Author(s) -
RODRIK DANI
Publication year - 1993
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/j.1468-0343.1993.tb00067.x
Subject(s) - redistribution (election) , economics , liberian dollar , capital (architecture) , monetary economics , outcome (game theory) , government (linguistics) , microeconomics , finance , linguistics , philosophy , archaeology , politics , political science , law , history
Redistributive taxation imposes no excess burden when: (a) the taxed group behaves collusively and takes into account government behavior, and (b) the redistribution outcome is an interior solution (i.e., after redistribution the government values a marginal dollar of income to each class equally). There is no dynamic inconsistency in capital taxation under the same conditions.