Public Infrastructure, Congestion, and Fiscal Policy
نویسنده
چکیده
A macro model is developed incorporating the productive e®ects of public expenditure, but also allowing for congestion. The Pigouvian tax rate to correct for the distortion caused by congestion is found and the optimal level of public expenditure is characterized. JEL Classi ̄cation Numbers: E62, H54 Corresponding author: John Bennett, Department of Economics and Finance, Brunel university, Uxbridge, Middlesex, UB8 3PH, United Kingdom. Tel. (+44) 1895 816201; fax (+44) 18895 203384; e-mail [email protected]
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