Accession Number:

ADA036139

Title:

Efficiency in the Optimum Supply of Public Goods.

Descriptive Note:

Technical rept.,

Corporate Author:

HARVARD UNIV CAMBRIDGE MASS

Report Date:

1976-11-01

Pagination or Media Count:

26.0

Abstract:

This paper is concerned with the question under what circumstances is the optimum allocation of expenditures between various public goods unaffected by a certain decentralization of decision making. Specifically, when can the relative optimum levels of public goods be determined without information concerning the effects on the equilibrium quantities of the specific taxes used to finance their production. It is shown that for this to hold for arbitrary taxes, it is necessary and sufficient that the partial derivative of the demand of each private taxable good with respect to the vector of quantities of public goods be proportional to the marginal utility of the vector of quantities of public goods. It is also shown that the assumption of optimum taxation widens considerably the possibilities for independent optimum expenditure and tax decisions. Author

Subject Categories:

  • Economics and Cost Analysis
  • Government and Political Science
  • Numerical Mathematics

Distribution Statement:

APPROVED FOR PUBLIC RELEASE