We study experimentally how taxpayers choose between two tax regimes to fund a public good. The first-best tax regime … imposes a general, distortion-free income tax. However, this tax cannot be enforced. The second-best alternative supplements … the income tax by a specific commodity tax. This tax cannot be evaded but distorts optimal consumption choices, instead …

in the way captured by the voting paradox. The rule allows people to select a final collective ranking by submitting a … fairness ; Voting paradox …

We study experimentally how taxpayers choose between two tax regimes to fund a public good. The first-best tax regime … imposes a general, distortion-free income tax. However, this tax cannot be enforced. The second-best alternative supplements … the income tax by a specific commodity tax. This tax cannot be evaded but distorts optimal consumption choices, instead …

We study experimentally how taxpayers choose between two tax regimes to fund a public good. The first-best tax regime … imposes a general, distortion-free income tax. However, this tax cannot be enforced. The second-best alternative supplements … the income tax by a specific commodity tax. This tax cannot be evaded but distorts optimal consumption choices, instead …