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Separability and public finance

Author

Listed:
  • Stéphane Gauthier

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique)

  • Guy Laroque

    (IFS - Laboratory of the Institute for Fiscal Studies - Institute for Fiscal Studies, Department of Economics - UCL - University College of London [London])

Abstract

In a second best environment, the optimal policy choice sometimes follows first best rules, as described in a number of scattered works. This paper presents a formal general argument which allows to unify much of the literature. It lays down the information structure and separability assumptions under which the results hold in a variety of setups, with extensions to preference heterogeneity and individual production sets

Suggested Citation

  • Stéphane Gauthier & Guy Laroque, 2009. "Separability and public finance," Post-Print hal-00731132, HAL.
    • Handle: RePEc:hal:journl:hal-00731132
    DOI: 10.1016/j.jpubeco.2009.09.003
    Note: View the original document on HAL open archive server: https://hal.science/hal-00731132
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    More about this item

    Keywords

    separability; second best optimality; indirect taxes; Samuelson rule; Pigovian taxation; individual production;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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