Proportional Taxation: Nonexistence of Stable Structures in an Economy with a Public Good
نویسندگان
چکیده
Guesnerie and Oddou [J. Econom. Theory 25 (1981), 67-91] raised the open question whether an economy, in which the production of a public good is nanced via proportional taxation, has a stable structure. By means of the rst 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. Journal of Economic Literature Classi cation Number: 022
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