Marsiliani, L.; Renstrom, T. - CentER for Economic Research, Universiteit van Tilburg - 1999
Tax earmarking imposes a constraint on government policymaking, and may be desirable if it solves a time-inconsistency problem in tax policy. In a two-period economy, in which the policy decisions regarding taxes, public goods provision, and pollution abatement are taken by a majority-elected...