TY - JOUR
T1 - Horizontal equity, income taxation and self-selection with an application to income tax credits
AU - Balcer, Yves
AU - Sadka, Efraim
N1 - Funding Information:
*The research reported here was supported by National Science Foundation Grant DAR-7917376 and by funds granted to the Institute for Research on Poverty at the University of Wisconsin-Madison by the Department of Health and Human Services (formerly HEW) pursuant to the provisions of the Economic Opportunity Act of 1964. The opinions expressed are those of the authors. We wish to thank Charles Wilson who suggested to us to explore the similarity of income taxation models to a wide variety of self-selection models. Thanks are also due to two anonymous referees of this Journal for many helpful comments and suggestions.
PY - 1982/12
Y1 - 1982/12
N2 - This paper investigates the relationship between utilitarianism and horizontal equity in models of income taxation in particular and self-selection in general. An example involving well-behaved individual preferences is constructed in which a maximization of a utilitarian social welfare function leads via income taxation to horizontal inequities. Sufficient conditions for utilitarianism to bring horizontal equity are derived. The results are applied to the question of whether income tax credits are an appropriate way to treat differences in family size.
AB - This paper investigates the relationship between utilitarianism and horizontal equity in models of income taxation in particular and self-selection in general. An example involving well-behaved individual preferences is constructed in which a maximization of a utilitarian social welfare function leads via income taxation to horizontal inequities. Sufficient conditions for utilitarianism to bring horizontal equity are derived. The results are applied to the question of whether income tax credits are an appropriate way to treat differences in family size.
UR - http://www.scopus.com/inward/record.url?scp=30344474436&partnerID=8YFLogxK
U2 - 10.1016/0047-2727(82)90058-5
DO - 10.1016/0047-2727(82)90058-5
M3 - מאמר
AN - SCOPUS:30344474436
VL - 19
SP - 291
EP - 309
JO - Journal of Public Economics
JF - Journal of Public Economics
SN - 0047-2727
IS - 3
ER -