Differential Taxation, Public Goods, and Economic Efficiency

Public goods provision and redistributive taxation ¬リニ

This paper studies the relationship between redistributive taxation and tax-deductible charitable contributions. Redistribution has two opposite effects on voluntary giving. The price of charitable giving decreases with the degree of redistribution, and this has a positive effect on the total amount of giving (substitution effect). However, redistribution leads to lower consumption for the cont...

Public Goods and Economic Development

Effective provision of public goods is a key element of quality of life. While poverty is frequently measured and conceived in terms of private consumption, this is too narrow a view. Two groups of people with similar private consumption will have very different qualities of life if there are significant differences in their access to safe drinking water or medical care. Mechanisms for effectiv...

Democracy, redistributive taxation and the private provision of public goods

Article history: Received 16 October 2009 Received in revised form 6 June 2010 Accepted 11 June 2010 Available online 19 June 2010 The paper studies in a simple, Downsian model of political competition the private provision of public goods embedded in a system of democracy and redistributive taxation. Results show that the positive effect of inequality on production of public goods, to which Ol...

Optimal Income Taxation, Public Goods Provision and Robust Mechanism Design

This paper extends the model of optimal income taxation due to Mirrlees (1971) and includes private information on public goods preferences. A mechanism design approach is used to establish the following result: If policies are required to be robustly implementable in the sense of Bergemann and Morris (2005), then the optimality conditions in the extended model with uncertainty about tax and ex...

Public goods provision, redistributive taxation, and wealth accumulation ¬リニ