Power and Taxes

Aumann, Robert J.; Kurz, Mordecai

doi:10.2307/1914063

Cited by 218 publications

(101 citation statements)

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“…where 2 • We now argue that each derivative given in (8.2) is nonnegative (i.e., post-tax wealth is increasing in labor-and land-wealths, as one would expect). Consider two individuals with the same utility function, but different endowments.…”

Section: Comparisons Within An Economymentioning

confidence: 75%

“…As in Aumann and Kurz [2,3] we do not need to specify all the strategies available to each coalition. For the solution concept we use, it is enough to assume that certain "extreme" actions are available.…”

Section: The Strategies Of Coalitionsmentioning

confidence: 99%

“…We shall not define the whole solution formally, since part of our argument runs parallel to that of Aumann and Kurz [ 2,3]. It is easy to show that the "extreme" actions specified in the previous section are optimal threats.…”

Section: Optimal Threats and The Solution Concept For The Economymentioning

confidence: 99%

“…A formal analysis of this question has recently been presented by Aumann and Kurz [2][3][4]. The basic idea behind their model is the following.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Why do some goods bear higher taxes than others?

Osborne

1984

Journal of Economic Theory

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Taxation in an economy containing land and labor is studied. The tax system is a compromise based on the relative power of all groups of individuals. (The model extends one of Aumann and Kurz.) In response to the threat of taxation by a majority, individuals can evade taxation of their labor-time (by destroying it), but cannot avoid taxation of the land they own. One result is that the compromise tax rate on land is higher than that on labor. This contrasts with the classical normative result that in order to minimize the efficiency loss, this tax rate should be higher. Joumal of Economic Literature Classification Numbers: 022, 320.

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Section: Comparisons Within An Economymentioning

confidence: 75%

Section: The Strategies Of Coalitionsmentioning

confidence: 99%

Section: Optimal Threats and The Solution Concept For The Economymentioning

confidence: 99%

“…A formal analysis of this question has recently been presented by Aumann and Kurz [2][3][4]. The basic idea behind their model is the following.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Why do some goods bear higher taxes than others?

Osborne

1984

Journal of Economic Theory

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“…If adults can effectively destroy some or all of their endowments, by emigrating or not working, for example, then there are limits on how punitive taxation can be. This threat is an essential element in Aumann and Kurz's (1977) analysis of taxation under simple majority voting. One of their salient results is that net income is an increasing function of gross income, with the poor receiving some income support.…”

Section: Political Implementationmentioning

confidence: 99%

Child Labor and the Education of a Society

Bell

Gersbach

2009

Macroecon. Dynam.

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This paper analyzes policies by means of which a whole society in an initial state of illiteracy and low productivity can raise itself into a condition of continuous growth.Using an overlapping generations model in which human capital is formed through child rearing and formal education, we show that an escape from a poverty trap, in which children work full time and no human capital accumulation takes place, is possible through compulsory education or programs of taxes and transfers. If school attendance is unenforceable, temporary inequality is unavoidable if the society is to escape in finite time, but long-run inequalities are avoidable provided sufficiently heavy, but temporary, taxes can be imposed on the better off. Programs that aim simply at high attendance rates in the present can be strongly nonoptimal.

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