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Ramon J. Torregrosa-Montaner
 
''Lump-sum over Distortionary Taxation Dominance with Heterogeneous Individuals''
( 2015, Vol. 35 No.3 )
 
 
The dominance of lump-sum over distortionary taxation for the single consumer case is a well-known proposition in microeconomics. This result implies that if the consumer is asked about what tax she would pay to bear a given tax burden, she would choose lump-sum taxation. This paper provides a version of this dominance of lump-sum taxation for the case of several heterogeneous individuals by means of a game where the government allows each individual to choose between the two tax regimes.
 
 
Keywords: Lump-sum taxation, distortionary taxation, pure strategy Nash equilibrium.
JEL: H3 - Fiscal Policies and Behavior of Economic Agents: General
 
Manuscript Received : Jun 10 2015 Manuscript Accepted : Jul 11 2015

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