Itaya, Jun-ichi; de Meza, David; Myles, Gareth D - In: Journal of Public Economic Theory 4 (2002) 3, pp. 273-97
This article investigates the role of taxation when public goods are privately provided. Externalities between consumers via the public good are shown to cause kinks in social indifference curves. As a result, a government restricted to income taxation should engineer enough inequality to ensure...