Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 715: General Income Taxation, Public Goods and Decentralized Leadership

Thomas Aronsson ()
Additional contact information
Thomas Aronsson: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

Abstract: This paper concerns redistribution and public good provision under asymmetric information, which are here ingredients of a policy-problem facing each member state (nation) of an economic federation with decentralized leadership. Each member state is assumed to have its own redistributive policy and pattern of public consumption, whereas the federal level redistributes (ex-post) between the member states. The results show how and why federal ex-post redistribution may modify the use of income taxation and public good provision at the national level, relative to the policy outcome in the absence of a federal government, as well as how the national policy incentives depend on whether or not the federal government uses distortionary taxes.

Keywords: Income taxation; redistribution; public goods; fiscal federalism; decentralized leadership

JEL-codes: D31; D60; D82; H21

29 pages, August 31, 2007

Full text files

DownloadAsset.action...Id=3&assetKey=ues715 PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to David Skog ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:13:51.