Gonzalez-Paramo, Jose M; Tang, De-Piao - In: Public Finance = Finances publiques 43 (1988) 1, pp. 79-95
This paper derives rules for optimal intervention under "categorical equity" principles in a decentralized economy. The analysis suggests that in a "first best" world, a perfectly discriminatory system of excise taxes, the tax treatment of "categorical equity" goods should include a subsidy...