Aigner, Rafael Christian - 2013 - This version, 1st March 2013
How is the optimal level of Pigouvian taxation influenced by distributive concerns? With second-best instruments, a … higher level of income redistribution calls for a lower level of Pigouvian taxation. More redistribution implies higher … decreases. With first-best in- struments, however, the relation between levels of redistribution and Pigouvian taxation is …