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provide additional redistribution without affecting standard incentive constraints …
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Using a collective model of consumption, we characterize optimal commodity taxes aimed at targeting specific individuals within the household. The main message is that distortionary indirect taxation can circumvent the agency problem of the household. Essentially, taxation should discourage less...
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We study the impact a redistribution of income has on the decisions of a health care innovator and the utility of … consumers. We find that income redistribution from rich to poor increases the quality of the medical innovation, reduces its … price and increases the utility of some of the consumers whose income is reduced through the redistribution. -- Health care …
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