Optimal provision of public goods with rank dependent expected utility
- Publisher: Oslo: University of Oslo, Department of Economics
H21 | Tax evasion; optimal taxation; rank dependent expected utility | Nutzen | H26 | Öffentliches Gut | optimal taxation | Optimale Besteuerung | rank dependent expected utility | Erwartungstheorie | D81 | Tax evasion | Steuerflucht | Theorie
In this paper the theory of rank-dependent expected utility (RDEU) is substituted for the theory of expected utility (EU) in a model of optimal provision of public goods. The substitution generalizes the Samuelson rule, previously modified to include deadweight loss and tax evasion loss.