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without any user charges, to provision with full user charges; we also study mixed systems. In our quest for the best system …
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The paper develops an integrated model of optimal nonlinear income taxation, public-goods provision and pricing in a large economy. With asymmetric information about labour productivities and publicgoods preferences, the multidimensional mechanism design problem becomes tractable by requiring...
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of congestion, the consumption tax is shown to be distortionary. Optimal fiscal policy involves using consumption …
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