Income inequality and the tax structure: Evidence from developed and developing countries

Antonis Adam, Pantelis Kammas () and Athanasios Lapatinas

MPRA Paper from University Library of Munich, Germany

Abstract: This paper seeks to examine the effect of income inequality on the structure of tax policies. We first use a simplified theoretical framework which allows us to formalize the testable implications of the relevant literature. Subsequently, our analysis indicates that more unequal economies rely heavier on capital relative to labor income taxation. This relationship remains robust across various alternative measures of income inequality and most importantly through alternative political regimes. In addition, our analysis places the spotlight on the potential reverse causality between income inequality and structure of the tax policies and seeks to address it by making use of the most appropriate data and techniques.

Keywords: inequality; tax structure; redistribution (search for similar items in EconPapers)
JEL-codes: H10 H23 (search for similar items in EconPapers)
Date: 2013-04-12
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Income inequality and the tax structure: Evidence from developed and developing countries (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46148

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