A note on production taxation and public-input provision
Mutsumi Matsumoto () and
Kota Sugahara ()
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Kota Sugahara: Kyoto Sangyo University
The Annals of Regional Science, 2017, vol. 59, issue 2, 419-426
Abstract Gugl and Zodrow (Natl Tax J 68:767–802, 2015) derive a general condition for (in)efficient public-input provision under production-tax financing. Their condition is described in terms of log modularity of production technology. This paper shows that in the case of “factor-augmenting” public inputs, the Gugl–Zodrow condition can be characterized in terms of the technical changes caused by public-input provision.
JEL-codes: H72 H79 R50 (search for similar items in EconPapers)
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