resource windfall commands a lower level of public capital but a higher level of redistribution through transfers. Second … total factor productivity in the non-resource sector reduces the degree of des-investment in public capital commanded by … Factor Productivity -- Figure 5. Public Investment Management Index and Non-resource Sector Total Factor -- Figure 6 …

consumption expenditures against the background of an incentive-compatible redistribution policy set by the central government …. Regional investment changes the productivity distribution in the economy, which aects the design of the optimal tax … the investment. Rich and poor regions both have strategic incentives to reduce investment which increases the productivity …

The Ramsey optimal taxation theory implies that the tax rate on capital income should be zero in the long run. This … reforms are modest. -- optimal taxation ; inequality ; redistribution …

capture serves as a redistribution tool when direct lump-sum transfers across regions are unfeasible. …