Christoffersen, Henrik; Svendsen, Gert Tinggaard - Nationalökonomisk Institut, Institut for Økonomi - 2000
Two main results in traditional tax theory states the following. First, general taxes minimize the welfare loss from <p> changed relative prices. Second, because the total public budget tends to exceed the optimal size, a leader (here <p> named ‘troop leader’) is needed in the budget process to...</p></p>