Arbeitspapier

Optimal democratic mechanisms for taxation and public good provision

We study the interdependence of optimal tax and expenditure policies. An optimal policy requires that information on preferences is made available. We first study this problem from a general mechanism design perspective and show that efficiency is possible only if the individuals who decide on public good provision face an own incentive scheme that differs from the tax system. We then study democratic mechanisms with the property that tax payers vote over public goods. Under such a mechanism, efficiency cannot be reached and welfare from public good provision declines as the inequality between rich and poor individuals increases.

Sprache
Englisch

Erschienen in
Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2008,9

Klassifikation
Wirtschaft
Public Goods
Social Choice; Clubs; Committees; Associations
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Asymmetric and Private Information; Mechanism Design
Thema
Public goods
optimal taxation
two-dimensional heterogeneity
asymmetric information
Optimale Besteuerung
Finanzpolitik
Öffentliches Gut
Allokationseffizienz
Ökonomische Theorie der Demokratie
Wahlverhalten
Asymmetrische Information
Theorie

Ereignis
Geistige Schöpfung
(wer)
Bierbrauer, Felix
Sahm, Marco
Ereignis
Veröffentlichung
(wer)
Max Planck Institute for Research on Collective Goods
(wo)
Bonn
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bierbrauer, Felix
  • Sahm, Marco
  • Max Planck Institute for Research on Collective Goods

Entstanden

  • 2008

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