We study the link between second-best production efficiency and the constraints on income distribution imposed by private ownership of firms in economies with Ramsey taxation. We review the result of Dasgupta and Stiglitz [1972], Mirrlees [1972], Hahn [1973], and Sadka [1977] about firm-specific...

This paper explores how to optimally set taxes and transfers when taxation authorities: (1) are uninformed about individuals? value of time in both market and non-market activities and (2) can observe both market-income and time allocated to market employment. We show that optimal redistribution...

I consider a situation wherein a research lab has developed a process innovation and wants to sell licenses to members of an industry. The literature has mostly considered the sale of exclusive licenses. I demonstrate, using both theoretical and experimental methods, that when firms sell...