Benefit-Cost Analysis and Distortionary Taxes: A Public Choice Approach
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منابع مشابه
A Note on the Optimal Supply of Public Goods and the Distortionary Cost of Taxation
In a recent article, I demonstrated that, under standard simplifying assumptions, it is possible to finance a public good in a manner such that a Pareto improvement results whenever the simple cost-benefit test is satisfied -that is, without any adjustment for the “marginal cost of funds.” In particular, the method of finance involves adjusting the income tax so that the combined incidence of t...
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