Artikel
Should Marginal Cost of Public Funds include the Revenue Effect?
It is an important difference in different measures of the marginal cost of public funds whether to take into account the "revenue effect" emphasized by Atkinson and Stern (1974). This note tries to reconcile two competing measures from a general viewpoint. We demonstrate that the revenue effect represents a distortionary effect associated with commodity taxation as opposed to a "windfall." We thus derive a new measure which captures the distortionary effect associated with commodity as opposed to lump-sum taxation. This new measure is guaranteed to be higher than unity. Moreover, this new measure lies between the two measures.
- Language
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Englisch
- Bibliographic citation
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Journal: Swiss Journal of Economics and Statistics ; ISSN: 2235-6282 ; Volume: 147 ; Year: 2011 ; Issue: 1 ; Pages: 1-16 ; Heidelberg: Springer
- Classification
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Wirtschaft
- Subject
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marginal cost of public funds
Pigou effect
revenue effect
Ramsey taxation
public good
- Event
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Geistige Schöpfung
- (who)
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Chang, Ming Chung
Wu, Shufen
- Event
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Veröffentlichung
- (who)
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Springer
- (where)
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Heidelberg
- (when)
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2011
- DOI
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doi:10.1007/BF03399339
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Chang, Ming Chung
- Wu, Shufen
- Springer
Time of origin
- 2011
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