Voting over selfishly optimal nonlinear income tax schedules with a minimum-utility constraint

B-Tier
Journal: Journal of Mathematical Economics
Year: 2016
Volume: 67
Issue: C
Pages: 18-31

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Pairwise majority voting over alternative nonlinear income tax schedules is considered when there is a continuum of individuals who differ in their labor productivities, which is private information, but share the same quasilinear-in-consumption preferences for labor and consumption. Voting is restricted to those schedules that are selfishly optimal for some individual. The analysis extends that of Brett and Weymark (2016) by adding a minimum-utility constraint to their incentive-compatibility and government budget constraints. It also extends the analysis of Röell (2012) and Bohn and Stuart (2013) by providing a complete characterization of the selfishly optimal tax schedules. It is shown that individuals have single-peaked preferences over the set of selfishly optimal tax schedules, and so the schedule proposed by the median skill type is a Condorcet winner.

Technical Details

RePEc Handle
repec:eee:mateco:v:67:y:2016:i:c:p:18-31
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24