Intertemporal Commitment Problems and Voting on Redistributive Taxation

Glazer, Amihai und Konrad, Kai A. (1994): Intertemporal Commitment Problems and Voting on Redistributive Taxation. In: Journal of Urban Economics, Vol. 36, No. 3: pp. 278-291

Abstract

A rich person who fears a loss of income may later favor redistributive taxation and a mix of taxes and public goods that differs from the one he now favors. If mobility is costly, and if government in each period uses majority voting to determine policy, then this person may prefer to live in a community that is permanently ruled by poor residents. Majority voting is a mechanism that can overcome intertemporal commitment problems of income insurance. © 1994 Academic Press. All rights reserved.

• Item Type: Journal article
• Form of publication: Publisher's Version
• Faculties: Economics > Chairs > MPI for Tax Law and Public Finance
• Subjects: 300 Social sciences > 330 Economics
• ISSN: 0094-1190
• Language: English