Profressivity of Burden-Sharing in a Lindahl Equilibrium
10 Pages Posted: 1 Dec 2017
Date Written: October 26, 2017
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: Suggested Citation