on subsidies. In the presence of aggregate shocks to benefits or to costs of public-good provision, tax-sensitive … majority rules, where the size of the required majority depends on the aggregate tax revenues, yield first-best allocations if …

on subsidies. In the presence of aggregate shocks to benefits or to costs of public-good provision, tax-sensitive … majority rules, where the size of the required majority depends on the aggregate tax revenues, yield first-best allocations if …