The appointment of a “technical government” in Italy in 2011 raised many criticism, mostly related to its lack of democratic legitimacy. The peculiar nature of this government has been justified with the risk of default of Italy which the “normal” political processes were assumed unable...

The paper extends the works by Judd [K.L. Judd, Redistributive Taxation in a Simple Perfect Foresight Model, J. Public Econ. 28 (1985), 59-83.] and Chamley [C. Chamley, Optimal taxation of capital income in general equilibrium with infinite lives, Econometrica, 54 (1986), 607-622.], who...