Institutional inequality and tax incidence |
| |
Authors: | Patricia Apps |
| |
Affiliation: | Graduate School of Planning, University of Sydney, Sydney, N.S.W., 2006, Australia |
| |
Abstract: | This paper analyses the effects of taxation when inequality is not innate. A theory of institutional inequality is presented which employs a trade model with circular production and the theory of clubs. Inequality is introduced by constraints on entry into sectors and ‘local’ groups within sectors. Individual time is treated as a fixed factor of production, and work and leisure are re-defined. The analysis suggests that when inequality is institutional and government policy does not alter the mechanisms by which institutions translate the distribution of power into the distribution of income, a redistribution of income by conventional tax-transfer schemes may not always be feasible. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|