Subsidies versus Public Provision of Private Goods as Instruments for Redistribution
在最优非线性所得税框架下，结合补贴和公共提供两种政策工具，分析政府如何利用它们进行再分配，并给出何时应使用一种或两种工具的条件。
The literatures on differential commodity taxes and on quantity controls to supplement income taxation have developed separately. This paper combines these two strands in the standard framework of optimal non‐linear income taxation. We use a model with two types of households where the government has access to both subsidy policy and public provision of a good substitutable for leisure, and ouseholds can supplement the publicity provided good from the market. We present conditions under which policy should involve one or both of these two instruments alongside income taxation. The model is extended to many ability types.