Governments redistribute by means of taxes, transfers, and public services. Relying on three sufficient statistics, we characterize the conditions under which nonlinear income taxation is optimally combined with input public provision in two-class and multi-class economies, where individual...

The economic debate underlines the reasons why discount rates of infrastructure projects should be similar, regardless the public or private source of financing, during the forecast period when flows are risky but predictable. In contrast, we show that the incompleteness of contracts between...