EconPapers    
Economics at your fingertips  
 

Variable Versus Fixed Rate Subsidies: Are the Latter Necessarily Less Efficient?

Alan S. Caniglia
Additional contact information
Alan S. Caniglia: Franklin and Marshall College

Public Finance Review, 1986, vol. 14, issue 1, 100-106

Abstract: In a recent article in this journal, Stutzer (1984) investigated the relative in-efficiencies of fixed versus variable rate subsidies as they pertain to analyzing different forms of revenue sharing. His analysis butlds on the theoretical presumption that a variable rate subsidy is generally less inefficient than a fixed rate subsidy of equal size. In this article it is shown that if the good being subsidized is a public good, it is possible that a fixed rate subsidy will be more efficient than a variable rate subsidy from a benefit-cost analysis perspective, once collective decision-making aspects are incorporated into the analysis. This indicates the importance of incorporating the presence of public goods, when appropriate, into an efficiency analysis to see whether traditional results are still valid .

Date: 1986
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/109114218601400106 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:14:y:1986:i:1:p:100-106

DOI: 10.1177/109114218601400106

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2025-03-19
Handle: RePEc:sae:pubfin:v:14:y:1986:i:1:p:100-106