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REDISTRIBUTIVE TAXATION WITHOUT EXCESS BURDEN

Dani Rodrik ()

Economics and Politics, 1993, vol. 5, issue 1, 53-60

Abstract: 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. Copyright 1993 Blackwell Publishers Ltd..

Date: 1993
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