Voting over piece-wise linear tax methods

No 10.02, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: We analyze the problem of choosing the most appropriate method for apportioning taxes in a democracy. We consider a simple model of taxation and restrict our attention to piece-wise linear tax methods, which are almost ubiquitous in advanced democracies worldwide. In spite of facing an impossibility result saying that if we allow agents to vote for any piece-wise linear tax method no equilibrium exists, we show that if we limit the domain of admissible methods in a meaningful way, albeit not restrictive, an equilibrium does exist. We also show that, for such a domain, a wide variety of methods can be supported in equilibrium. This last result provides rationale for some activities of special interest groups.

Keywords: voting; taxes; majority; single crossing; special interest politics. (search for similar items in EconPapers)
JEL-codes: D72 H24 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2010-01
New Economics Papers: this item is included in nep-cdm, nep-pol and nep-pub
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http://www.upo.es/serv/bib/wps/econ1002.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Voting over piece-wise linear tax methods (2011)
Working Paper: Voting over piece-wise linear tax methods (2011)
Working Paper: Voting over piece-wise linear tax methods (2010)
Working Paper: Voting over piece-wise linear tax methods (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:10.02

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