The optimal provision of public inputs in a second best scenario

Diego Martínez

Economics Bulletin, 2004, vol. 8, issue 3, 1-9

Abstract: This paper provides a simple general equilibrium model with productive public spending and distorting taxes. The optimal conditions for the provision of public inputs are obtained under different tax systems. Also we discuss which factors affect the marginal cost of public funds.

JEL-codes: H4 H5 (search for similar items in EconPapers)
Date: 2004-05-19
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Working Paper: OPTIMAL PROVISION OF PUBLIC INPUTS IN A SECOND BEST SCENARIO (*)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-04h40001

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