The marginal welfare cost of public funds: Theory and estimates

• 成果类型: Article
• 署名作者: Snow, A; Warren, RS
• 署名单位: University System of Georgia; University of Georgia
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(95)01535-3
• 发表日期: 1996
• 页码: 289-305
• 关键词: marginal welfare cost; distortionary taxation; public goods

摘要

We derive a general analytic formula for the marginal welfare cost (MWC) of public funds without imposing restrictive assumptions on preferences or technologies. The framework encompasses the various special cases previously considered, and reconciles the disparities among the reported estimates of MWC. Unresolved differences in existing estimates are fully explained by appropriate interpretations of intended though; experiments and alternative assumptions about the elasticity of labor supply with respect to public spending. Further progress in measuring MWC requires empirical estimation of labor-supply functions that include government spending as an explanatory variable.