Bastani, Spencer; Blomquist, Sören; Micheletto, Luca - Nationalekonomiska Institutionen, Uppsala Universitet - 2010
Previous literature has shown that public provision of private goods can be a welfareenhancing device in second-best settings where governments pursue redistributive goals. However, three issues have so far been neglected. First, the case for supplementing an optimal nonlinear income tax with...