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IFS Working Papers
November 2008 W08/07
Article
Separability and public finance
Type: IFS Working Papers
Authors: Stéphane Gauthier and Guy Laroque
ISSN: 1742-0415
Volume, issue, pages: 18 pp.
JEL classification: H21, H11
Keywords: separability, second best optimality, indirect taxes, Samuelson rule, Pigovian taxation

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In a second best environment, the optimal policy choice sometimes follows the first best rules. This note lays down the information structure and separability assumptions under which this property holds in a variety of setups.

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