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An axiomatization of the leveling tax-transfer policy

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Abstract
We show that the leveling tax-transfer policy is the only consistent policy that exploits the maximum allowed transfers, as long as these are no more than the amount sufficient to equalize after-tax incomes. The leveling policy stands in contrast to equal sacrifice policies, which are also consistent but do not conduct any transfers.

Suggested Citation

  • Nir Dagan, 2008. "An axiomatization of the leveling tax-transfer policy," Economic theory and game theory 020, Nir Dagan.
    • Handle: RePEc:nid:ndagan:020
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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