Arbeitspapier

Optimal income taxation, public goods provision and robust mechanism design

This paper extends the model of optimal income taxation due to Mirrlees (1971) and includes private information on public goods preferences. A mechanism design approach is used to establish the following result: If policies are required to be robustly implementable in the sense of Bergemann and Morris (2005), then the optimality conditions in the extended model with uncertainty about tax and expenditure policies, are the same as in the standard model of optimal income taxation. The paper provides a foundation for a widely used assumption in public nance, namely that individuals optimize their behaviour subject to a predetermined and commonly known tax system.

Sprache
Englisch

Erschienen in
Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2008,31

Klassifikation
Wirtschaft
Social Choice; Clubs; Committees; Associations
Asymmetric and Private Information; Mechanism Design
Taxation and Subsidies: Efficiency; Optimal Taxation
Public Goods
Thema
Optimal Taxation
public goods provision
Revelation of Preferences
Optimale Besteuerung
Öffentliches Gut
Mechanism
Offenbarte Präferenzen
Theorie

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

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

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

Entstanden

  • 2008

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