Distortionary taxation and the free-rider problem

This paper derives a version of the Samuelson rule which takes into account that a distortionary Ramsey-tax system is used to finance public-goods provision. Individuals have private information about their public-goods preferences. Moreover, individuals differ in their productive abilities. The inc...idence of taxation in the Ramsey model implies that more productive individuals have a lower willingness to pay for public goods than less productive individuals. They are therefore tempted to understate their valuation of public goods and less productive individuals are inclined to exaggerate theirs. The paper characterizes an optimal rule for taxation and public-goods provision that eliminates these biases. Ausführliche Beschreibung Beschreibung ausblenden

Vorheriger Titel:	Distortionary taxation and the free-rider problem - In: Preprints aus dem Max-Planck-Institut zur Erforschung von Gemeinschaftsgütern ; 2006/6 Felix Bierbrauer: Essays on public goods provision and income taxation, University of Mannheim, Mannheim, 2006
1. Person:	Bierbrauer, Felix
Quelle:	[Sammelordner] Kopien von Aufsätzen der Wissenschaftler der Max-Planck-Projektgruppe Recht der Gemeinschaftsgüter als auch des Max-Planck-Instituts zur Erforschung von Gemeinschaftsgütern (), Weitere Artikel
Format:	Artikel Zeitschrift
Sprache:	English
Veröffentlicht:	2012
Ausgabe:	Published online 29 NOV 2011
Schlagworte:	Distortionary taxation Public-good provision Revelation of preferences Two-dimensional heterogeneity
Online Zugang:	Volltext
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Anmerkung:	In : International Tax and Public Finance. - 2012, Vol. 19, 5, S. 732 - 752