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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 null society property, weak differential monotonicity essentially 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.

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Metadaten
Document Type:Working Paper
Language:English
Author:André CasajusORCiD
Chairs and Professorships:Chair of Economics and Information Systems
Year of Completion:2016
Note:
HHL Working Paper 157. Leipzig: HHL Leipzig Graduate School of Management, 2016