Article ID Journal Published Year Pages File Type
969090 Journal of Public Economics 2009 7 Pages PDF
Abstract

In a second best environment, the optimal policy choice sometimes follows first best rules. This paper presents a formal general argument which allows to unify much of the literature. It lays down the information structure and separability assumptions under which the results hold in a variety of setups, with extensions to preference heterogeneity and individual production sets.

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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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