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Progressivity of burden-sharing in a Lindahl Equilibrium: a unifying criterion

Author

Listed:
  • Wolfgang Buchholz

    (University of Regensburg and CESifo Munich)

  • Dirk Rübbelke

    (TU Bergakademie Freiberg)

Abstract

In this paper, we show that progressivity (regressivity) of burden sharing in a Lindahl equilibrium is a direct consequence of gross complementarity (substitutability) between the private and the public good when the public good is taken as the numéraire. We then link these novel basic conditions to the conditions for progressivity (regressivity) that have been presented in the literature so far.

Suggested Citation

  • Wolfgang Buchholz & Dirk Rübbelke, 2018. "Progressivity of burden-sharing in a Lindahl Equilibrium: a unifying criterion," Economics Bulletin, AccessEcon, vol. 38(4), pages 1978-1985.
    • Handle: RePEc:ebl:ecbull:eb-18-00125
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I4-P181.pdf
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    References listed on IDEAS

    as
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    7. Samuelson, Paul A, 1974. "Complementarity-An Essay on the 40th Anniversary of the Hicks-Allen Revolution in Demand Theory," Journal of Economic Literature, American Economic Association, vol. 12(4), pages 1255-1289, December.
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    Cited by:

    1. Wolfgang Buchholz & Dirk Rübbelke, 2020. "Improving Public Good Supply and Income Equality: Facing a Trade-Off," CESifo Working Paper Series 8786, CESifo.

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    More about this item

    Keywords

    Lindahl equilibrium; progressive (regressive) burden sharing; complements and substitutes;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • D6 - Microeconomics - - Welfare Economics

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