nep-pub New Economics Papers
on Public Finance
Issue of 2008‒12‒01
three papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. The Provision of a Public Good with a direct Provision Technology and a Large Number of Agents By Behringer, Stefan
  2. Taxation and Income Distribution Dynamics in a Neoclassical Growth Model By Cecilia Garcìa-Peñalosa; Stephen J. Turnovsky
  3. Goods and services tax for India. By Rao, R. Kavita

  1. By: Behringer, Stefan
    Abstract: This paper provides a limit result for the provision of a public good in a mechanism design framework as the number of agents gets large. What distinguishes the public good investigated in this analysis is its direct provision technology which is commonplace in modern information technologies.
    Keywords: Public Goods; Direct Provision; Asymmetric Information; Mechanism Design; Open Source Software.
    JEL: B21 H41 H30
    Date: 2008–09–12
  2. By: Cecilia Garcìa-Peñalosa (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579); Stephen J. Turnovsky (University of Washington - University of Washington)
    Abstract: We examine how changes in tax policies affect the dynamics of the distributions of wealth and income in a Ramsey model in which agents differ in their initial capital endowment. The endogeneity of the labor supply plays a crucial role in determining inequality, as tax changes that affect hours of work will affect the distribution of wealth and income, reinforcing or offsetting the direct redistributive impact of taxes. Our results indicate that tax policies that reduce the labor supply are associated with lower output but also with a more equal distribution of after-tax income. We illustrate these effects by examining the impact of recent tax changes observed in the US and in European economies.
    Keywords: taxation; wealth distribution; income distribution; endogenous labor supply; transitional dynamics
    Date: 2008–11–24
  3. By: Rao, R. Kavita (National Institute of Public Finance and Policy)
    Date: 2008–11

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