Proportional taxation: Nonexistence of stable structures in an economy with a public good (Q761336)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Proportional taxation: Nonexistence of stable structures in an economy with a public good |
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Proportional taxation: Nonexistence of stable structures in an economy with a public good (English)
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1985
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\textit{R. Guesnerie} and \textit{C. Oddou} [ibid. 25, 67-91 (1981; Zbl 0484.90027)] raised the question whether an economy, in which the production of a public good is financed via proportional taxation, has a stable structure. By means of the first example a negative answer to this question is provided. The second example shows that a stable structure may fail to exist even if all the individuals have the same initial endowments in private good.
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public good
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proportional taxation
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