Near-Optimality of Uniform Copayments for Subsidies and Taxes Allocation Problems

We study a subsidies and taxes allocation problem with endogenous market response subject to a budget constraint. The central planner’s objective is to maximize the consumption of a good, and she allocates per-unit copayments and taxes to its producers. We show that the optimal policy taxes the more...

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Bibliographic Details
Main Authors: Levi, Retsef, Perakis, Georgia, Romero, Gonzalo
Other Authors: Sloan School of Management
Format: Article
Language:English
Published: Institute for Operations Research and the Management Sciences (INFORMS) 2021
Online Access:https://hdl.handle.net/1721.1/130509