Abstract
Guesnerie and Oddou [J. Econom. Theory 25 (1981), 67-91] raised the open question whether an economy, in which the production of a public good is financed via proportional taxation, has a stable structure. By means of the first example a negative answer to this question is provided. The second example shows that a stable structure may fail to exist even if all the individuals have the same initial endowments in private good.
| Original language | English |
|---|---|
| Pages (from-to) | 178-185 |
| Number of pages | 8 |
| Journal | Journal of Economic Theory |
| Volume | 35 |
| Issue number | 1 |
| DOIs | |
| State | Published - Feb 1985 |
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