A note on the link between public expenditures and distortionary taxation

Thomas Gaube ()
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Thomas Gaube: Department of Economics, University of Vienna

Economics Bulletin, 2007, vol. 8, issue 9, 1-10

Abstract: This note deals with the optimal provision of a public good in the context of the Ramsey tax model. It is shown that the second-best level of public good provision is inefficiently low relative to a situation where additional expenditures can be financed by lump-sum taxation.

Keywords: distortionary; taxation (search for similar items in EconPapers)
JEL-codes: H2 H4 (search for similar items in EconPapers)
Date: 2007-10-04
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Citations: View citations in EconPapers (2)

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