Optimal Taxation, Social Preferences and the Four Worlds of Welfare Capitalism in Europe

38 Pages Posted: 14 Jun 2015

See all articles by Amedeo Spadaro

Amedeo Spadaro

University of the Balearic Islands - Facultat de Ciències Econòmiques i Empresarials; Paris School of Economics (PSE)

Luca Piccoli

University of Trento; University of the Balearic Islands - Departament d'Economia Aplicada

Lucia Mangiavacchi

University of the Balearic Islands - Departament d'Economia Aplicada

Date Written: July 2015

Abstract

Drawing on the formal setting of optimal taxation theory, this paper identifies the degree of Rawlsianism (poverty aversion) exhibited by European social planners, beginning with the observation of actual data and redistribution systems. The paper contributes to the comparative research on the structure and typology of welfare capitalism. The social preferences implicit in tax‐benefit systems are recovered by inverting the optimal taxation model for all European countries using European Union Statistics on Income and Living Conditions data. The results are discussed in light of the four worlds of welfare capitalism classification proposed by Esping‐Andersen.

Suggested Citation

Spadaro, Amedeo and Spadaro, Amedeo and Piccoli, Luca and Mangiavacchi, Lucia, Optimal Taxation, Social Preferences and the Four Worlds of Welfare Capitalism in Europe (July 2015). Economica, Vol. 82, Issue 327, pp. 448-485, 2015, Available at SSRN: https://ssrn.com/abstract=2618120 or http://dx.doi.org/10.1111/ecca.12108

Amedeo Spadaro (Contact Author)

University of the Balearic Islands - Facultat de Ciències Econòmiques i Empresarials ( email )

Crta. de Valldemossa km 7, 5
07071 Palma Mallorca
Spain
00-34-971-173077 (Phone)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France
+33-1-43136344 (Phone)

HOME PAGE: http://www.pse.ens.fr

Luca Piccoli

University of Trento ( email )

Italy

HOME PAGE: http://https://sites.google.com/site/piccoliluca/

University of the Balearic Islands - Departament d'Economia Aplicada ( email )

Crta. de Valldemossa km 7,5
07122 Palma
Spain

HOME PAGE: http://www.uib.es/depart/deaweb/webpersonal/lucapiccoli/en/index.html

Lucia Mangiavacchi

University of the Balearic Islands - Departament d'Economia Aplicada ( email )

Crta. de Valldemossa km 7,5
07122 Palma
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
277
PlumX Metrics