In this paper, an economy is analyzed where one group of agents, the altruists, cares about the well-being of another group of agents, the recipients. It is asked how changes in the size of these groups affect the altruists’ charitable giving in the Nash equilibrium. I show that a pure group...

In an analysis of a two-type income tax model with endogenous wages, this paper shows that production efficiency is violated in the optimum with (i) non-linear and (ii) linear income taxation if and only if a distortionary tax schedule is implemented. These findings complement earlier results of...