Weak differential monotonicity, flat tax, and basic income

Koji Yokote, André Casajus*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

We suggest a weak version of differential monotonicity for redistribution rules: whenever the differential of two persons’ income weakly increases, then their post-redistribution rewards essentially change in the same direction. Together with efficiency, non-negativity, and the average property, weak differential monotonicity characterizes redistribution via taxation at a fixed rate and equal distribution of the total tax revenue, i.e., a flat tax and a basic income.

Original languageEnglish
Pages (from-to)100-103
Number of pages4
JournalEconomics Letters
Volume151
DOIs
Publication statusPublished - 2017 Feb 1
Externally publishedYes

Keywords

  • Basic income
  • Differential monotonicity
  • Flat tax
  • Redistribution
  • Weak differential monotonicity

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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