Marsiliani, Laura; Renstrom, Thomas I - In: Economic Journal 110 (2000) 462, pp. 123-38
Tax earmarking imposes a constraint on government policymaking, and may be desirable if it solves a time-inconsistency problem in tax policy. In a two-period economy, in which the policy decisions regarding taxes, public goods provision, and pollution abatement are taken by a majority-elected...