An axiomatization of the leveling tax-transfer policy

Nir Dagan ()

Economic theory and game theory from Nir Dagan

Abstract: We show that the leveling tax-transfer policy is the only consistent policy that exploits the maximum allowed transfers, as long as these are no more than the amount sufficient to equalize after-tax incomes. The leveling policy stands in contrast to equal sacrifice policies, which are also consistent but do not conduct any transfers.

JEL-codes: D63 H20 (search for similar items in EconPapers)
Date: 2008-02
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Persistent link: http://EconPapers.repec.org/RePEc:nid:ndagan:020

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