Lectures on Public Economics

allocation allow analysis assumed assumption behaviour bequests budget constraint cent choice Cobb-Douglas commodity competitive consider consumer consumption corporation tax debt decisions demand denotes depends depreciation differential distribution earlier economy effects of taxation efficiency equal equations equilibrium example expenditure finance firm first-best first-order conditions horizontal equity household illustrated imperfect competition implications income effect income tax increase indifference curve indirect taxes indirect utility function individuals interest investment labour supply lifetime Lindahl equilibrium lump-sum tax marginal cost marginal rate marginal tax rate maximization Mirrlees numeraire optimal tax optimum output Pareto-efficient possible preferences problem production profits proportional tax Rawlsian redistribution reduced relative returns to scale revenue risk-taking risky asset savings Section social welfare function Stiglitz substitution effect Suppose t₁ tax schedule tax system theory treatment utility function variable voting wage welfare economics zero