The (Retail) Price of Inequality

David Frankel

Working Papers from Tel Aviv

Abstract: A panel study reveals that an increase in pretax income equality leads to sudstantially lower retail prices. Prices also fall if the income tax on high income families is raised. One explanation is that equality makes consumer demand more elastic. This would imply that progressive taxation helps reduce the distortions that come from imperfect competition in retail markets.

Keywords: RETAIL TRADE; PRICES; TAXES; INCOME (search for similar items in EconPapers)
JEL-codes: D33 H70 H71 L81 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1996
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Retail Price of Inequality (2001)
Working Paper: The Retail Price of Inequality (2001)
Working Paper: The Retail Price of Inequality (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:teavfo:23-96

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