Tommy Andersson
Professor
Gale's Fixed Tax for Exchanging Houses
Författare
Summary, in English
We consider the taxation of exchanges among a set of agents where each agent owns one object. Agents may have different valuations for the objects and they need to pay taxes for exchanges. Using basic properties, we show that if pairwise (or some) exchanges of objects are allowed, then all exchanges (in any possible manner) must be feasible. Furthermore, whenever any agent exchanges his object, he pays the same fixed tax (a lump sum payment which is identical for all agents) independently of which object he consumes. Gale's top trading cycles algorithm finds the final allocation using the agents' valuations adjusted with the fixed tax. Our mechanisms are in stark contrast to Clarke-Groves taxation schemes or the max-med schemes proposed by Sprumont (2013).
Avdelning/ar
- Nationalekonomiska institutionen
Publiceringsår
2018
Språk
Engelska
Publikation/Tidskrift/Serie
Working Papers
Issue
2018:17
Länkar
Dokumenttyp
Working paper
Ämne
- Economics
Nyckelord
- Fixed Tax
- Exchanges
- Top Trading
- C71
- C78
- D63
- D71
- D78
Status
Published