The marginal cost of public funds in large welfare state countries

Geir H. M. Bjertnæs ()
Additional contact information
Geir H. M. Bjertnæs: Statistics Norway, https://www.ssb.no/en/forskning/ansatte

Discussion Papers from Statistics Norway, Research Department

Abstract: The marginal cost of public funds (MCF) is substantial in generous welfare state countries according to Kleven and Kreiner (2006). Their main estimate for the Danish economy exceeds 2 mainly because taxation distorts labor force participation. Adjustments in social transfers which alleviate such extensive margin distortions are however not considered. This study shows that MCF within a similar welfare state country, Norway, should be in the interval 1.06 - 1.16 when social transfers alleviate such distortions.

Keywords: Marginal cost of public funds; Optimal income taxation; Social security transfers; tagging (search for similar items in EconPapers)
JEL-codes: H21 H23 H41 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2018-06
New Economics Papers: this item is included in nep-knm and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.ssb.no/en/forskning/discussion-papers/_attachment/354468 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:ssb:dispap:879

Ordering information: This working paper can be ordered from
https://www.ssb.no/e ... fare-state-countries

Access Statistics for this paper

More papers in Discussion Papers from Statistics Norway, Research Department P.O.Box 8131 Dep, N-0033 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by L Maasø ().