Proportional income taxes and cores in a public goods economy |
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Authors: | Mikio Nakayama |
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Affiliation: | Faculty of Economics, Toyama University, 3190 Gofuku, Toyama 930, Japan |
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Abstract: | An equivalence relationship between cores and Pareto optimal allocations of a public goods economy where the public goods are to be provided through a proportional income tax is presented. For this purpose, the definition of the core is modified by allowing coalitions to tax their complements at any given rate. Also, a certain rule which specifies the rate is introduced. |
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