Blomquist, Sören; Christiansen, Vidar; Micheletto, Luca - In: American Economic Journal: Economic Policy 2 (2010) 2, pp. 1-27
Using an optimal taxation model combined with a previously neglected scheme of public provision of private goods, we show that there is an efficiency gain if public provision of selected goods replaces market purchases and that efficiency requires marginal income tax rates to be higher than if...
