The laws on codetermination in Germany provide enormous rights for employees to control and influence the decisions of firms. This weakens the owners' property rights, which, however, is not necessarily inefficient. Codetermination can be seen as a safeguard against opportunistic exploitation of...

Recently, several papers have re-examined the so-called production efficiency theorem and the Atkinson and Stiglitz theorem on commodity taxes in the optimal taxation literature. Naito (1999) showed that indirect redistribution through production distortion or consumption distortion can...

Recently, several papers have re-examined the so called production efficiency theorem and the Atkinson and Stiglitz theorem on commodity taxes in the optimal taxation literature. Naito (1998) showed that indirect redistribution through production distortion or consumption distortion can...