Price Subsidies versus Public Provision
The paper discusses which redistributional policies are efficient when the identity of the high and low skill persons is private information. Our major purpose is to identify the more efficient policy when, presumably for administrative reasons, the policy option is confined to the choice between a price subsidy or public provision in addition to income taxation. We also study the simultaneous use of nonlinear taxation, commodity taxation and public provision of private goods.
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|Date of creation:||05 May 1997|
|Date of revision:|
|Publication status:||Published in International Tax and Public Finance, 1998, pages 283-306.|
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