Title: Redistribution, taxes, and the median voter
Description: "We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the policy is infinite-dimensional, we prove that a median voter theorem holds if households have identical, Gorman aggregable preferences; furthermore, the tax policy preferred by the median voter has the "bang- bang" property."--Federal Reserve Bank of Chicago web site.
Subjects: Taxation, Econometric models