Working Paper
Progressivity of Burden-Sharing in a Lindahl Equilibrium
Wolfgang Buchholz, Dirk Rübbelke
CESifo, Munich, 2017
CESifo Working Paper No. 6704
CESifo, Munich, 2017
CESifo Working Paper No. 6704
In this paper, we show that progressivity (regressivity) of burden sharing in a Lindahl equilibrium is a direct consequence of gross complementarity (substitutability) between the private and the public good when the public good is taken as the numéraire. We, moreover, link the respective conditions for gross complementarity to the more familiar ones in which the private good serves as the numéraire.
CESifo Category
Public Finance
Energy and Climate Economics
Public Finance
Energy and Climate Economics
JEL Classification: D630, H230, H410