SOCIAL ACCOUNTING AND THE PUBLIC SECTOR

Thomas Aronsson

International Economic Review, 2008, vol. 49, issue 1, 349-375

Abstract: This article contributes to the theory of social accounting. As such, it tries to extend earlier literature on the welfare equivalence of the comprehensive net national product in two main directions, both of which refer to the public sector. One is by considering welfare measurement problems associated with public good provision and redistributive policy, respectively, when the public revenues are raised by distortionary taxes. The other is by addressing the consequences of a "federation-like" decision structure, where independent tax and expenditure decisions are made both by the central government and by lower level governments. Copyright 2008 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.

Date: 2008
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