Profressivity of Burden-Sharing in a Lindahl Equilibrium

10 Pages Posted: 1 Dec 2017

See all articles by Wolfgang Buchholz

Wolfgang Buchholz

Universitaet Regensburg; CESifo (Center for Economic Studies and Ifo Institute)

Dirk T. G. Rübbelke

Technische Universität Bergakademie Freiberg

Date Written: October 26, 2017

Abstract

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.

Keywords: Lindahl equilibrium, progressive (regressive) burden sharing, complements and substitutes

JEL Classification: D630, H230, H410

Suggested Citation

Buchholz, Wolfgang and Rübbelke, Dirk T. G., Profressivity of Burden-Sharing in a Lindahl Equilibrium (October 26, 2017). CESifo Working Paper Series No. 6704. Available at SSRN: https://ssrn.com/abstract=3079449

Wolfgang Buchholz

Universitaet Regensburg ( email )

D-93040 Regensburg, 93053
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Dirk T. G. Rübbelke (Contact Author)

Technische Universität Bergakademie Freiberg ( email )

Freiberg, 09599
Germany

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