Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
986727 | Review of Economic Dynamics | 2006 | 13 Pages |
Abstract
We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the policy is infinite-dimensional, we prove that a median voter theorem holds if households have identical, Gorman aggregable preferences; furthermore, the tax policy preferred by the median voter has the “bang-bang” property.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Marco Bassetto, Jess Benhabib,