BANKRUPTCY RULES AND PROGRESSIVE TAXATION

Juan de Dios Moreno Ternero () and Antonio Villar
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Juan de Dios Moreno Ternero: Yale University
Authors registered in the RePEc Author Service: Juan D. Moreno-Ternero

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper explores the relative progressivity of the main bankruptcy rules in taxation problems. A rule F is more progressive than a rule G when the after-tax income vector generated by F Lorenz dominates that generated by G. We focus our analysis on four classical rules (proportional, equal-awards, equal-losses and Talmud) and on the TAL-family, introduced in Moreno-Ternero & Villar (2002). This family depends on a parameter Theta belongs to [0,1] and encompasses the constrained equal awards rule, the constrained equal losses rules and the Talmud rule.

Keywords: Bankruptcy Rules; Taxation Problems; Progressivity (search for similar items in EconPapers)
Pages: 28 pages
Date: 2002-08
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Citations: View citations in EconPapers (2)

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