This paper studies the provision of a public good via voluntary contributions in an economy with uncertainty and differential information. Consumers differ in their private information regarding their future endowment as well as in their preferences. Each consumer selects her consumption ex...

We investigate how redistribution of income is affected by the fact that income is privately observed and agents may not be truthful in their reports to tax authorities. In response, the government establishes an audit mechanism with penalties. Adhering to a signaling equilibrium concept, we...