Weak differential monotonicity, flat tax, and basic income

Koji Yokote, André Casajus

    Research output: Contribution to journalArticle

    3 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

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    Keywords

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

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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