On the Stability of Income Taxation - A Coalitional Approach
On the Stability of Income Taxation - A Coalitional Approach

Summary/Abstract: We provide an alternative stability concept (similar to the least core of the cooperative game theory) for income tax systems, in economic environments with one-dimensional policy space, where the agents would selfishly vote for the tax that taxes them less, and the set of Condorcet winners is empty. We prove the existence of stable taxations for the majority of the sets of admissible tax systems that appear in the related literature

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