Interregional redistribution through tax surcharge
This paper considers a utilitarian federal government that attempts to effect some revenue sharing or to finance through taxation some national public good. For reason of asymmetric information, this financing cannot be based on actual regional income nor on regional preferences, as it should be in a first-best setting. The only information available at no cost to federal authorities is the amount of regional public spending. In this setting with two imperfectly observable characteristics, regional income and regional preferences, we derive an optimal tax surcharge that can be viewed as a non linear matching grant scheme. This is done first without and second with the possibility of using costly auditors to acquire more information on regional income.
(This abstract was borrowed from another version of this item.)
|Date of creation:|
|Date of revision:|
|Note:||In : International Tax and Public Finance, 3, 157-173, 1996|
|Contact details of provider:|| Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Picard, P. & Gilbert, G., 1992.
"Incentives and the Optimal Size of Local Territories,"
Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva
92.12, Institut d'Economie et Econométrie, Université de Genève.
- Picard Pierre & Gilbert G, 1991. "Incentives and the optimal size of local territories," CEPREMAP Working Papers (Couverture Orange) 9124, CEPREMAP.
- Cremer, H. & Pestieau, P., .
"Distributive implications of European integration,"
CORE Discussion Papers RP
1237, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Kofman, Fred & Lawarree, Jacques, 1993.
"Collusion in Hierarchical Agency,"
Econometric Society, vol. 61(3), pages 629-56, May.
- Kofman, F. & Lawarree, J., 1990. "Collusion in Hierarchical Agency," Discussion Papers in Economics at the University of Washington 91-01, Department of Economics at the University of Washington.
- Kofman, F. & Lawarree, J., 1990. "Collusion in Hierarchical Agency," Working Papers 91-01, University of Washington, Department of Economics.
- Dagobert L. Brito & Jonathan H. Hamilton & Steven M. Slutsky & Joseph E. Stiglitz, 1990.
"Pareto Efficient Tax Structures,"
NBER Working Papers
3288, National Bureau of Economic Research, Inc.
- Guesnerie Roger & Seade Jesus, 1981.
"Nonlinear pricing in a finite economy,"
CEPREMAP Working Papers (Couverture Orange)
- Horst Raff & John Wilson, 1997. "Income Redistribution with Well-Informed Local Governments," International Tax and Public Finance, Springer, vol. 4(4), pages 407-427, November.
When requesting a correction, please mention this item's handle: RePEc:cor:louvrp:1218. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
If references are entirely missing, you can add them using this form.