Pietro Tommasino (corresponding author) Bank of Italy via Nazionale 91, 00184 Rome. e‐mail: pietro.tommasino@bancaditalia.it . We thank Giuseppe Albanese, Guido de Blasio, Damian Clarke, Domenico Depalo, Emma Galli, Paolo Sestito, Marc Sagnier, Luigi Signorini and seminar participants at the Bank of Italy, the Annual Conference of the Italian Society for Public Economics (SIEP), the University of Turin, the Annual meeting of the European Public Choice Society, and the 13Journées Gérard‐Varet for useful suggestions. We are grateful to Damien Clarke for several suggestions on how to apply thepackage. All remaining errors are ours. The views expressed in this paper do not necessarily reflect those of the Bank of Italy. Search for more papers by this author