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政大典藏 > College of Social Science > Department of Public Finance > Periodical Articles > Item 140.119/59160

Please use this identifier to cite or link to this item: https://nccur.lib.nccu.edu.tw/handle/140.119/59160

Title:	Political Economy and the Social Marginal Cost of Public Funds: The Case of the Meltzer-Richard Economy
Authors:	Hsu,K. W. Kevin;Yang,C. C.
Contributors:	政大財政系
Keywords:	Wage rigidity;Firm community;Catastrophe;Hysteresis
Date:	2008-07
Issue Date:	2013-08-26 16:11:07 (UTC+8)
Abstract:	In previous studies on the social marginal cost of public funds (SMCF), the existing tax system has been assumed to be either arbitrary or optimal. This note explores another possibility: the existing tax system itself represents a political equilibrium. Our exploration proceeds in Meltzer and Richards (1981) political economy of redistributive taxation. An interesting feature of our finding is that the degree of income inequality as measured by the ratio of mean to median income can play an important role in estimating the SMCF and judging whether the level of redistribution is excessive or inadequate.
Relation:	Economic Inquiry, 46(3), 401-410
Data Type:	article
DOI link:	http://dx.doi.org/10.1111/j.1465-7295.2007.00089.x
DOI:	10.1111/j.1465-7295.2007.00089.x
Appears in Collections:	[Department of Public Finance] Periodical Articles

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