EconPapers    
Economics at your fingertips  
 

Redistributive Taxation with Endogenous Sentiments

Laurence Kranich () and Joan Esteban ()

Discussion Papers from University at Albany, SUNY, Department of Economics

Abstract: In this paper we present a model in which an individual's sentiments toward others are affected by how they behave relative to the societal norm. This, in turn, affects the individual's own behavior and hence other agents' sentiments toward her. We focus on stationary patterns of utility interdependence. To demonstrate the effects of such endogeneity, we consider an example of a production economy with redistributive taxation. There are two types of stationary equilibria: one in which all agents conform to the societal norm, and a second involving social stratification on the basis of productivity into two or three groups. The main conclusion is that the tax structure, in that it affects behavior which in turn affects sentiments, plays a crucial role in determining which type of equilibrium occurs and its characteristics as well as the extent of altruism and social cohesion in society.

JEL-codes: D64 H23 Z13 (search for similar items in EconPapers)
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.albany.edu/economics/research/workingp/2002/TaxnandSentim.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.albany.edu/economics/research/workingp/2002/TaxnandSentim.pdf [301 Moved Permanently]--> https://www.albany.edu/economics/research/workingp/2002/TaxnandSentim.pdf)

Related works:
Working Paper: Redistributive Taxation with Endogenous Sentiments (2015) Downloads
Working Paper: Redistributive Taxation with Endogenous Sentiments (2003) Downloads
Working Paper: Redistributive Taxation with Endogenous Sentiments (2002) Downloads
Working Paper: REDISTRIBUTIVE TAXATION WITH ENDOGENOUS SENTIMENTS Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nya:albaec:02-12

Ordering information: This working paper can be ordered from
Department of Economics, Building 25, Room 103 University at Albany State University of New York Albany, NY 12222 U.S.A.
http://www.albany.ed ... workingp/index.shtml

Access Statistics for this paper

More papers in Discussion Papers from University at Albany, SUNY, Department of Economics Department of Economics, Building 25, Room 103 University at Albany State University of New York Albany, NY 12222 U.S.A..
Bibliographic data for series maintained by Byoung Park ().

 
Page updated 2025-03-19
Handle: RePEc:nya:albaec:02-12