by the Ramsey government not only increases aggregate efficiency, but it also decreases inequality. This result is in … contrast to common view and policy practice. -- user fees ; Ramsey taxation ; efficiency ; inequality …

government share in GDP; and as a measure of government efficiency, we construct an index by following the methodology of Afonso … efficiency. Specifically, while a larger size of government is bad for incentives when one ignores efficiency, the results change … drastically when government efficiency is also taken into account. Only when our measure of size exceeds our measure of efficiency …

providers cannot beat private providers in terms of aggregate efficiency. We finally design a transfer scheme that can make a …