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Diego Martinez-Lopez
''The optimal provision of public inputs in a second best scenario''
( 2004, Vol. 8 No.3 )
This paper provides a simple general equilibrium model with productive public spending and distorting taxes. The optimal conditions for the provision of public inputs are obtained under different tax systems. Also we discuss which factors affect the marginal cost of public funds.
JEL: H4 - Publicly Provided Goods: General
H5 - National Government Expenditures and Related Policies National Government Expenditures and Related Policies: General
Manuscript Received : Apr 14 2004 Manuscript Accepted : May 19 2004

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