Procedural fairness and redistributive proportional tax

Verfasser / Beitragende:
[P. Herings, Arkadi Predtetchinski]
Ort, Verlag, Jahr:
2015
Enthalten in:
Economic Theory, 59/2(2015-06-01), 333-354
Format:
Artikel (online)
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024 7 0 |a 10.1007/s00199-014-0852-9  |2 doi 
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245 0 0 |a Procedural fairness and redistributive proportional tax  |h [Elektronische Daten]  |c [P. Herings, Arkadi Predtetchinski] 
520 3 |a We study the implications of procedural fairness on the share of income that should be redistributed. We formulate procedural fairness as a particular non-cooperative bargaining game and examine the stationary subgame perfect equilibria of the game. The equilibrium outcome is called tax equilibrium and is shown to be unique. The procedurally fair tax rate is defined as the tax rate that results in the limit of tax equilibria when the probability that negotiations break down converges to zero. The procedurally fair tax rate is shown to be unique. We also provide a characterization of the procedurally fair tax rate that involves the probability mass of below average income citizens and a particular measure of the citizens' boldness. This characterization is then used to show that in a number of interesting cases, the procedurally fair tax rate equals the probability mass of below average income citizens. 
540 |a Springer-Verlag Berlin Heidelberg, 2014 
690 7 |a Procedural fairness  |2 nationallicence 
690 7 |a Tax rate  |2 nationallicence 
690 7 |a Bargaining  |2 nationallicence 
700 1 |a Herings  |D P.  |u Department of Economics, Maastricht University, P.O. Box 616, 6200 MD, Maastricht, The Netherlands  |4 aut 
700 1 |a Predtetchinski  |D Arkadi  |u Department of Economics, Maastricht University, P.O. Box 616, 6200 MD, Maastricht, The Netherlands  |4 aut 
773 0 |t Economic Theory  |d Springer Berlin Heidelberg  |g 59/2(2015-06-01), 333-354  |x 0938-2259  |q 59:2<333  |1 2015  |2 59  |o 199 
856 4 0 |u https://doi.org/10.1007/s00199-014-0852-9  |q text/html  |z Onlinezugriff via DOI 
898 |a BK010053  |b XK010053  |c XK010000 
900 7 |a Metadata rights reserved  |b Springer special CC-BY-NC licence  |2 nationallicence 
908 |D 1  |a research-article  |2 jats 
949 |B NATIONALLICENCE  |F NATIONALLICENCE  |b NL-springer 
950 |B NATIONALLICENCE  |P 856  |E 40  |u https://doi.org/10.1007/s00199-014-0852-9  |q text/html  |z Onlinezugriff via DOI 
950 |B NATIONALLICENCE  |P 700  |E 1-  |a Herings  |D P.  |u Department of Economics, Maastricht University, P.O. Box 616, 6200 MD, Maastricht, The Netherlands  |4 aut 
950 |B NATIONALLICENCE  |P 700  |E 1-  |a Predtetchinski  |D Arkadi  |u Department of Economics, Maastricht University, P.O. Box 616, 6200 MD, Maastricht, The Netherlands  |4 aut 
950 |B NATIONALLICENCE  |P 773  |E 0-  |t Economic Theory  |d Springer Berlin Heidelberg  |g 59/2(2015-06-01), 333-354  |x 0938-2259  |q 59:2<333  |1 2015  |2 59  |o 199