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Separability and Public Finance

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  • Stéphane Gauthier

    (Crest)

  • Guy Laroque

    (Crest)

Abstract

In a second best environment, the optimal policy choice sometimesfollows the first best rules. This note lays down the information structureand separability assumptions under which this property holds in a varietyof setups.

Suggested Citation

  • Stéphane Gauthier & Guy Laroque, 2008. "Separability and Public Finance," Working Papers 2008-24, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2008-24
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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