Redistributive Taxation with Endogenous Sentiments

dc.creator	Esteban, Joan
dc.creator	Kranich, Laurence
dc.date	2007-11-06T08:57:48Z
dc.date	2007-11-06T08:57:48Z
dc.date	2002-06-21
dc.date.accessioned	2017-01-31T00:58:05Z
dc.date.available	2017-01-31T00:58:05Z
dc.identifier	http://hdl.handle.net/10261/1889
dc.identifier.uri	http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1889
dc.description	We present a model in which an individual's sentiments towards others are determined endogenously on the basis of how they perform relative to the societal average. This, in turn, affects the individual's own behavior and hence other agents' sentiments toward her. We focus on stationary patterns of utility interdependence. To demonstrate the effects of such endogeneity, we consider an example of a production economy with redistributive taxation. There are two types of stationary equilibria: one in which all agents conform to the societal norm, into two or three groups. The main conclusion is that the tax structure, in that it affects behavior which in turn affects sentiments, plays a crucial role in determining which type of equilibrium occurs and its characteristics as well as the extent of altruism and social cohesion in society.
dc.language	eng
dc.relation	UFAE and IAE Working Papers
dc.relation	529.02
dc.rights	openAccess
dc.title	Redistributive Taxation with Endogenous Sentiments
dc.type	Documento de trabajo

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