EconPapers    
Economics at your fingertips  
 

Public Provision of Private Goods, Tagging and Optimal Income Taxation with Heterogeneity in Needs

Spencer Bastani (), Sören Blomquist and Luca Micheletto

No 2010:14, Working Paper Series, Center for Fiscal Studies from Uppsala University, Department of Economics

Abstract: Previous literature has shown that public provision of private goods can be a welfareenhancing device in second-best settings where governments pursue redistributive goals. However, three issues have so far been neglected. First, the case for supplementing an optimal nonlinear income tax with public provision of private goods has been made in models where agents di er only in terms of market ability. Second, the magnitude of the welfare gains achievable through public provision schemes has not been assessed. Third, the similarities/di erences between public provision schemes and tagging schemes have not been thoroughly analyzed. Our purpose in this paper is therefore threefold: rst, to extend previous contributions by incorporating in the theoretical analysis both heterogeneity in market ability and in the need for the publicly provided good; second, to perform numerical simulations to quantify the size of the potential welfare gains achievable by introducing a public provision scheme, and to characterize the conditions under which these welfare gains are sizeable; nally, to compare the welfare gains from public provision with the welfare gains from tagging.

Keywords: optimal income taxation; in-kind transfers; tagging (search for similar items in EconPapers)
JEL-codes: H21 H42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-cta, nep-pbe and nep-pub
Date: 2010-11-16
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://ucfs.nek.uu.se/digitalAssets/129/129584_201014.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Working Paper: Public Provision of Private Goods, Tagging and Optimal Income Taxation with Heterogeneity in Needs (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:uufswp:2010_014

Access Statistics for this paper

More papers in Working Paper Series, Center for Fiscal Studies from Uppsala University, Department of Economics Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Katarina Grönvall (). This e-mail address is bad, please contact .

 
Page updated 2019-04-23
Handle: RePEc:hhs:uufswp:2010_014