Should public capital be subsidized or provided?

• 成果类型: Article
• 署名作者: Devarajan, S; Xie, DY; Zou, HF
• 署名单位: The World Bank; Hong Kong University of Science & Technology; Wuhan University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(97)00072-X
• 发表日期: 1998
• 页码: 319-331
• 关键词: public capital; subsidy; taxes; public provision

摘要

In an endogenous-growth model, we consider alternative ways of providing public capital using distortionary taxes. We show that if the government provides the good, the resulting growth rate and welfare may or may not be higher than under laissez-faire. By contrast, if the government subsidizes private providers, not only are growth and welfare higher than under public provision, they are also unambiguously higher than under laissez-faire. (C) 1998 Elsevier Science B.V. All rights reserved.