Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
969090 | Journal of Public Economics | 2009 | 7 Pages |
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.
Keywords
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Economics and Econometrics
Authors
Stéphane Gauthier, Guy Laroque,