 Redistributive Taxation under Ethical Behaviour*Robin Boadway, Nicolas Marceau and Steeve Mongrain Scandinavian Journal of Economics, 2007, vol. 109, issue 3, 505-529 Abstract: We consider the implications of ethical behaviour on the effect of a redistributive tax‐transfer system. In choosing their labour supplies, individuals take into account whether their tax liabilities correspond to what they view as ethically acceptable. If tax liabilities are viewed as ethically acceptable, a taxpayer behaves ethically, does not distort her behaviour, and chooses to work as if she were not taxed. On the other hand, if ethical behaviour results in tax liabilities that exceed those that are ethically acceptable, she behaves egoistically (partially or fully), distorts her behaviour, and chooses her labour supply taking into account the income tax. We establish taxpayers' equilibrium behaviour and obtain that labour supply is less elastic when taxpayers may behave ethically than when they act egoistically. We characterise and compare the egoistic voting equilibrium linear tax schedules under potentially ethical and egoistic behaviour. We also compare our results to those obtained under altruism, an alternative benchmark. Date: 2007 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:109:y:2007:i:3:p:505-529 Ordering information: This journal article can be ordered from Access Statistics for this article Scandinavian Journal of Economics is currently edited by Richard Friberg, Matti Liski and Kjetil Storesletten More articles in Scandinavian Journal of Economics from Wiley Blackwell |
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