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Jean-Marie Lozachmeur, Pierre Pestieau and Jon Hamilton
''Rawlsian governments and the race to the bottom''
( 2002, Vol. 8 No.2 )
This paper argues that there is no race to the bottom when the social planner adopts a Rawlsian criterion, only the poor are mobile and they do not work at the optimal tax outcome. This argument is developed within a two skill-model of optimal income taxation.
Keywords: Income taxation
JEL: H2 - Taxation, Subsidies, and Revenue: General
H7 - State and Local Government; Intergovernmental Relations: General
Manuscript Received : Aug 01 2002 Manuscript Accepted : Aug 01 2002

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