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Thomas Gaube
 
''A note on the link between public expenditures and distortionary taxation''
( 2007, Vol. 8 No.9 )
 
 
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.
 
 
Keywords: distortionary taxation
JEL: H4 - Publicly Provided Goods: General
H2 - Taxation, Subsidies, and Revenue: General
 
Manuscript Received : Oct 04 2007 Manuscript Accepted : Oct 04 2007

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