@article{Blackorby:271292,
      recid = {271292},
      author = {Blackorby, Charles and Murty, Sushama},
      title = {Constraints on Income Distribution and Production  Efficiency In Economies with Ramsey Taxation},
      address = {2009-05},
      number = {2068-2018-2588},
      series = {WERP 908},
      pages = {30},
      year = {2009},
      abstract = {We study the link between second-best production  efficiency and the constraints on income distribution  imposed by private ownership of firms in economies with  Ramsey taxation. We review the result of Dasgupta and  Stiglitz [1972], Mirrlees [1972], Hahn [1973], and Sadka  [1977] about firm-specific profit taxation leading to  second-best production effi- ciency. Problems in the proofs  of this result in these papers have been identified by  Reinhorn [2005]. We provide an alternative, and with some  hope a more intuitive, proof of this result. The mechanism  employed in our proof is also used to show second-best  production efficiency under some configuarations of private  ownership without any (or at best, uniform) profit  taxation. The results obtained raise questions about the  genericity of the phenomenon of second-best production  inefficiency and about recovering social shadow prices in  such economies.},
      url = {http://ageconsearch.umn.edu/record/271292},
      doi = {https://doi.org/10.22004/ag.econ.271292},
}