
Abstract 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.
Median voter, gorman aggregation, capital income taxes, Taxation ; Wealth, Redistribution; Median voter; Capital income taxes; Gorman aggregation, jel: jel:H23, jel: jel:H21
Median voter, gorman aggregation, capital income taxes, Taxation ; Wealth, Redistribution; Median voter; Capital income taxes; Gorman aggregation, jel: jel:H23, jel: jel:H21
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