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• W3124184487 abstract "We revisit the classical result that taxation of private consumption is distortionary and therefore precludes the efficient provision of public goods. We introduce a nonlinear consumption tax which we call a ‘tax lottery’. Under this scheme, an ad-valorem consumption tax is supplemented with a lottery in which consumers can win cash prizes. The winning probabilities in this lottery depend on all consumers' private good consumption decisions. We show that for a given ad-valorem tax, an appropriately designed lottery can implement an efficient allocation in pure-strategy Nash equilibrium. The lottery component corrects the distortion in private consumption due to the ad-valorem tax, while the resulting tax revenue is sufficient to efficiently provide the public good and pay out the lottery prize." @default.
• W3124184487 created "2021-02-01" @default.
• W3124184487 creator A5040571732 @default.
• W3124184487 creator A5054962829 @default.
• W3124184487 date "2014-12-01" @default.
• W3124184487 modified "2023-09-30" @default.
• W3124184487 title "Consuming your way to efficiency: Public goods provision through non-distortionary tax lotteries" @default.
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• W3124184487 doi "https://doi.org/10.1016/j.ejpoleco.2014.06.006" @default.
• W3124184487 hasPublicationYear "2014" @default.
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