Progressive Taxation: Applying Hayek's Constraint

That progressive taxation might offset a disproportionate burden of indirect taxes upon low income households sits at the heart of a suggestion from Friedrich Hayek. This concerns the manner in which a degree of progression might be accommodated and constrained to preclude arbitrary tax hikes upon minority income groups. While Hayek's proposal is permissive of socialist aims, it looks for efficiency in resource usage as reflected in the aspiration ‘that each should feel that in the aggregate all the collective goods which are applied to him are worth at least as much as the contribution he is required to make’.     

Optimal Taxation,Economic Growth and Income Inequality

That there is a trade-off between equityand efficiency (economic growth) is wellknown. Two models have been developed thatlink government spending and taxation toeconomic growth. This paper uses thesemodels to provide estimates of thegrowth-maximizing tax rate. Then, a twoequation structural model is developed andestimated that is used to find thetrade-off rate between economic growth andincome inequality and the growth-maximizinglevel of income inequality for the UnitedStates over the period 1960–1990.     

刍论我国社会公平收入分配的税收制度安排

目前,我国收入分配差距呈现逐渐加大之势,加速推进收入分配制度改革刻不容缓。引起我国居民收入分配差距不断扩大的税收原因主要在于税制结构不合理和个人所得税存在缺陷。因此,应从这两方面入手,尽快开征社会保障税、遗产税及赠与税,完善支持第三次分配格局形成的税收政策,重新确定个人所得税模式和纳税单位,建立个人收入监控体系,充分发挥税收在公平收入分配中的作用。     

Counter-Reform in the American Welfare State: Ideas,Institutions, and Progressive Taxation

The Nixon/Ford years were a pivotal period when severe fiscal problems emerged whose resolutions constrained the ambit of social policy afterward. A shared diagnosis of economic challenges produced divergent effects in the electoral fortunes of the major political parties and set the stage for an upward redistribution of wealth. Horizontal equity became synonymous with overall tax equity. This article examines how economic ideas acquire political traction.     

Packaging Support for Low‐Income Families: Policy Variation across the United States

This paper addresses a gap in state‐level comparative social policy research by analyzing policies that support low‐income families with children. Variation in state policy “packages” is measured by considering three characteristics of 11 social programs. Individual measures of policy are found to be weakly and inconsistently inter‐correlated at the state level, but when cluster analysis is used to analyze multiple dimensions simultaneously, five clusters or regime types are identified that have distinctive policy approaches. These range from the most minimal provisions, to conservative approaches emphasizing private responsibility, to integrated approaches that combine generous direct assistance with employment support and policies that enforce family responsibility. A comparison of a subset of programs at two points in time (1994 and 1998) suggests that states made substantial changes in cash assistance and taxation policies after the 1996 federal welfare reforms. The magnitude and direction of these changes remained consistent with the state clusters identified in 1994. © 2001 by the Association for Public Policy Analysis and Management.     

Are Preferences for Fiscal Discipline Endogenous

Differences in voters' fiscal preferencesare examined taking advantage of theexceptional Swiss institutional setting.Empirical evidence suggests thatpreferences are determined by strictlycultural patterns (cultural area measuredby language). Thus, fiscal preferences canbe considered as being largely exogenous.This implies that, except for specialcases, it is not possible to find simpleproxy variables for fiscal preferences. Anad hoc index of fiscal preferencesought to be built up when the introductionof this variable is required forcomprehensive explanatory models of fiscaldiscipline or for other related studies.     

Postrecession Drivers of Preferences for Homeownership

The analysis presented in this article finds little evidence to suggest that individuals' preferences for owning versus renting a home have been affected by their exposure to recent house price declines and loan delinquency rates, or by knowing others in their neighborhood who have defaulted on their mortgages. Instead, this analysis finds individual characteristics, particularly current housing tenure, to be the strongest predictors of postrecession demand for homeownership.     

The Party's Primary Preferences: Race,Gender, and Party Support of Congressional Primary Candidates

Party support has a strong influence on candidate success in the primary. What remains unexplored is whether party actions during the primary are biased along racial and gender lines. Using candidate demographic data at the congressional level and measures of party support for primary candidates, we test whether parties discriminate against women and minority candidates in congressional primaries and also whether parties are strategic in their support of minority candidates in certain primaries. Our findings show parties are not biased against minority candidates and also that white women candidates receive more support from the Democratic Party than do other types of candidates. Our findings also suggest that parties do not appear to strategically support minority candidates in districts with larger populations of minorities. Lastly, we also find no significant differences in the effects of party support on the likelihood of success in the primary by candidate race or gender.     

Some Implications of Corporate Taxation for Rent-Seeking Activity

In this paper we show that corporate taxes are likely to have considerable implications for rent-seeking activity. We find that corporate taxation tends to significantly reduce rent-seeking, and that it favors rent-seeking by established firms and discriminates against new and zero profit firms. Indeed, we show that corporate tax regulations may completely block rent-seeking by new corporations, and that rent-seeking competitions may be characterized by an equilibrium that features a small number of profitable and well established firms. Tax regulations may therefore impart an oligopolistic tendency to rent-seeking markets. Moreover, our results may have significant implications for the effects of corporate taxes on patent races, tournaments, and other first-past-the-post competitions.     

64% Majority rule in Ducal Venice: Voting for the Doge

A recent result of Caplin and Nalebuff (1988) demonstrates that, under certain conditions on individual preferences and their distribution across society, super-majority rule performs well as a social decision rule. If the required super-majority is chosen appropriately, the rule yields a unique winner and voter cycles cannot occur. The voting procedure for electing a Doge in medieval Venice, developed in 1268, employed a super-majority requirement agreeing with the Caplin and Nalebuff formula. We present a brief history of the Venetian political institutions, show how the rule was employed, and argue that it contributed to the remarkable centuries-long political stability of Venice.     

Public Preferences for Program Tradeoffs: Community Values for Budget Priorities

A growing literature concerns techniques to improve community-based reforms and citizen-centered governance in order to reinforce the trust in democratic government. We analyze a contingent choice technique that systematically collects information about individual citizens' relative values of a set of state public programs. Individual citizens are asked to allocate a fixed increment of public funds. Individuals reveal their marginal willingness to trade off (MWTTO) additions in one program for additions in another. MWTTO values provide program rankings and information concerning the relative strength of citizen preferences. An example of a contingent choice survey is described.     

Heat Waves,Droughts, and Preferences for Environmental Policy

Using data from a new household survey on environmental attitudes, behaviors, and policy preferences, we find that current weather conditions affect preferences for environmental regulation. Individuals who have recently experienced extreme weather (heat waves or droughts) are more likely to support laws to protect the environment. We find evidence that the channel through which weather conditions affect policy preference is via perceptions of the importance of the issue of global warming. Furthermore, environmentalists and individuals who consult more sources of news are less likely to have their attitudes toward global warming changed by current weather conditions. These findings suggest that communication and education emphasizing consequences of climate change salient to the individual's circumstances may be the most effective in changing attitudes of those least likely to support proenvironment policy. In addition, the timing of policy introduction could influence its success.     

Preferences for International Redistribution: The Divide over the Eurozone Bailouts

Why do voters agree to bear the costs of bailing out other countries? Despite the prominence of public opinion in the ongoing debate over the eurozone bailouts, voters' preferences on the topic are poorly understood. We conduct the first systematic analysis of this issue using observational and experimental survey data from Germany, the country shouldering the largest share of the EU's financial rescue fund. Testing a range of theoretical explanations, we find that individuals' own economic standing has limited explanatory power in accounting for their position on the bailouts. In contrast, social dispositions such as altruism and cosmopolitanism robustly correlate with support for the bailouts. The results indicate that the divide in public opinion over the bailouts does not reflect distributive lines separating domestic winners and losers. Instead, the bailout debate is better understood as a foreign policy issue that pits economic nationalist sentiments versus greater cosmopolitan affinity and other‐regarding concerns.     

Pollution,Politics, and Preferences for Environmental Spending in the States

While state environmental and natural resource spending is designed to address actual environmental problems, the budget process is also inherently political. Thus, in the following article we ask a simple question: to what extent does state environmental and natural resource spending respond to the scope of environmental problems in a state, versus the demands of the political process? Unlike the bulk of previous research, we consider both aggregate spending and program‐specific spending. We also consider how the severity of environmental problems and the political environment may interact to determine spending. The findings show that politics, specifically the strength of the environmental movement, is a more important determinant of state environmental spending than pollution severity. However, for some program areas, it appears that strong environmental groups make state budgets more responsive to the severity of environmental problems.