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This paper derives a version of the Samuelson rule, which takes not only the marginal costs of public funds into account but also the desirability of preference revelation. Under a linear income tax more able individuals suffer from a larger utility loss if taxes are raised to cover the cost of...
Persistent link: https://www.econbiz.de/10014059394
This paper combines the problem of optimal income taxation with the free-rider problem in public good provision. There are two groups of individuals with private information on their earning ability and their valuation of a public good. Adjustments of the transfer system are needed to discourage...
Persistent link: https://www.econbiz.de/10014060569
the external constraints imposed by this mechanism may affect consumption, pricing and the true redistributive concerns of … redistribution of the international agency in charge of designing the mechanism and the role of its ability to enforce that mechanism …
Persistent link: https://www.econbiz.de/10014064318
Serizawa [3] characterized the set of strategy-proof, individually rational, no exploitative, and non-bossy social choice functions in economies with pure public goods. He left an open question whether non-bossiness is necessary for his characterization. We will prove that non-bossiness is...
Persistent link: https://www.econbiz.de/10014179633
We reconsider Laussel and Palfrey's (2003) analysis of private provision of a discrete public good via the subscription game. We show that the equilibria they define as semi-regular do not exist. Taking players' values for the public good as uniformly distributed on [vl, vh] with vl 0, we...
Persistent link: https://www.econbiz.de/10014050790
We consider a revelation mechanism for the production of public goods. A sample of consumers is drawn at random. Each … surplus of taxes collected on sampled agents is redistributed to non-sampled agents. This polling mechanism is non … to a public good with exclusion, this mechanism, in combination with consumer free mobility, yields approximately optimal …
Persistent link: https://www.econbiz.de/10014140603
approximate the optimal solution by a simple fixed fee mechanism, which involves second degree price discrimination if identities … are informative about the distribution of preferences. Truth-telling is a dominant strategy in the fixed fee mechanism …
Persistent link: https://www.econbiz.de/10014142553
provision mechanism weakly exceeds a prespecified ratio alpha. We call this requirement "alpha proportional individual … in a mechanism. We find that as the economy becomes large, an agent's influence in any anonymous mechanism converges to … zero, and any interim incentive compatible anonymous mechanism must converge to a constant mechanism. We obtain the uniform …
Persistent link: https://www.econbiz.de/10013085858
Private provision of public goods often takes place as a war of attrition: individuals wait until someone else volunteers and provides the good. After a certain time period, however, one individual may be randomly selected. If the individuals are uncertain about their cost of provision, but can...
Persistent link: https://www.econbiz.de/10013094017
We characterize the Pareto-frontier in a simple Mirrleesian model of income taxation. We show how the second-best frontier which incorporates incentive constraints due to private information on productive abilities relates to the first-best frontier which takes only resource constraints into...
Persistent link: https://www.econbiz.de/10013075665