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| Thomas Gaube |
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| ''A note on the link between public expenditures and distortionary taxation'' |
| ( 2007, Vol. 8 No.9 ) |
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| This note deals with the optimal provision of a public good in the context of the Ramsey tax model. It is shown that the second-best level of public good provision is inefficiently low relative to a situation where additional expenditures can be financed by lump-sum taxation. |
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| Keywords: distortionary taxation |
JEL: H4 - Publicly Provided Goods: General
H2 - Taxation, Subsidies, and Revenue: General |
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| Manuscript Received : Oct 04 2007 | | Manuscript Accepted : Oct 04 2007 |
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