Rawlsian governments and the race to the bottom

Jean-Marie Lozachmeur, Pierre Pestieau and Jonathan Hamilton

Economics Bulletin, 2002, vol. 8, issue 2, 1-6

Abstract: This paper argues that there is no race to the bottom when the social planner adopts a Rawlsian criterion, only the poor are mobile and they do not work at the optimal tax outcome. This argument is developed within a two skill-model of optimal income taxation.

Keywords: Income; taxation (search for similar items in EconPapers)
JEL-codes: H2 H7 (search for similar items in EconPapers)
Date: 2002-08-01
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Citations: View citations in EconPapers (5)

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