Weak differential monotonicity, flat tax, and basic income
- We suggest a weak version of differential monotonicity for redistribution rules: whenever the differential of two persons' income weakly increases, then their post-redistribution rewards essentially change in the same direction. Together with efficiency, non-negativity, and the average property, weak differential monotonicity characterizes redistribution via taxation at a fixed rate and equal distribution of the total tax revenue, i.e., a flat tax and a basic income.
| Document Type: | Article |
|---|---|
| Language: | English |
| Author: | Koji Yokote, André Casajus |
| Chairs and Professorships: | Chair of Economics and Information Systems |
| DOI: | https://doi.org/10.1016/j.econlet.2016.12.011 |
| Year of Completion: | 2017 |
| Note: | In: Economics Letters, 151 (2017), 100-103 |