This paper extends the standard model of optimum commodity taxation (Ramsey (1927) and Diamond-Mirrlees (1971)) to a competitive economy in which some markets are inefficient due to asymmetric information. As in most insurance markets, consumers impose varying costs on suppliers but firms cannot...

Vortrag von Prof. Eytan Sheshinski Sir Isaac Wolfson Professor of Public Finance Depart-ment of Economics, The Hebrew University of Jerusalem