The Atkinson-Stiglitz Theorem shows that with weakly separable preferences, differential commod- ity taxes are not needed if an optimal nonlinear income tax is imposed. Redistributive objectives can be achieved with the income tax alone even if goods differ considerably in their income...

We study optimal redistributive taxes when the population can be disaggregated into tagged groups. Under reasonable circumstances, the tax system will be more redistributive in the tagged group with the higher proportion of high-ability persons. We extend the analysis to the case where the tag...

The non-cooperative provision of public goods is analysed in the context of a two-stage game in which club size is determined endogenously. Equilibrium club size and voluntary labour supply are shown to be inefficient. The impact of optimally-chosen fiscal policies using simple instruments is...