Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods

The fact that raising taxes can increase taxed labor supply through income effects is frequently and erroneously used to justify greater public good provision than indicated by traditional, compensated analyses. We develop a model including multiple public goods and taxes and derive measures of the...

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Bibliographic Details
Main Authors:	Anderson, James E., Martin, Will
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Personal Income and Other Nonbusiness Taxes and Subsidies includes inheritance and gift taxes H240 Fiscal Policies and Behavior of Economic Agents: Household H310 Public Goods H410 Time Allocation and Labor Supply J220
Online Access:	http://hdl.handle.net/10986/5714

id	okr-10986-5714
recordtype	oai_dc
spelling	okr-10986-57142021-04-23T14:02:23Z Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods Anderson, James E. Martin, Will Personal Income and Other Nonbusiness Taxes and Subsidies includes inheritance and gift taxes H240 Fiscal Policies and Behavior of Economic Agents: Household H310 Public Goods H410 Time Allocation and Labor Supply J220 The fact that raising taxes can increase taxed labor supply through income effects is frequently and erroneously used to justify greater public good provision than indicated by traditional, compensated analyses. We develop a model including multiple public goods and taxes and derive measures of the marginal benefits of public goods and the Marginal Cost of Funds (MCF) using both compensated and uncompensated measures. We confirm that the desirability of tax-financed public projects is independent of the method used. An important innovation is to show that the benefits of public goods must be adjusted by a benefit multiplier not previously seen in the literature if an uncompensated MCF is used. 2012-03-30T07:34:10Z 2012-03-30T07:34:10Z 2011 Journal Article Journal of Public Economic Theory 10973923 http://hdl.handle.net/10986/5714 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Personal Income and Other Nonbusiness Taxes and Subsidies includes inheritance and gift taxes H240 Fiscal Policies and Behavior of Economic Agents: Household H310 Public Goods H410 Time Allocation and Labor Supply J220
spellingShingle	Personal Income and Other Nonbusiness Taxes and Subsidies includes inheritance and gift taxes H240 Fiscal Policies and Behavior of Economic Agents: Household H310 Public Goods H410 Time Allocation and Labor Supply J220 Anderson, James E. Martin, Will Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The fact that raising taxes can increase taxed labor supply through income effects is frequently and erroneously used to justify greater public good provision than indicated by traditional, compensated analyses. We develop a model including multiple public goods and taxes and derive measures of the marginal benefits of public goods and the Marginal Cost of Funds (MCF) using both compensated and uncompensated measures. We confirm that the desirability of tax-financed public projects is independent of the method used. An important innovation is to show that the benefits of public goods must be adjusted by a benefit multiplier not previously seen in the literature if an uncompensated MCF is used.
format	Journal Article
author	Anderson, James E. Martin, Will
author_facet	Anderson, James E. Martin, Will
author_sort	Anderson, James E.
title	Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods
title_short	Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods
title_full	Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods
title_fullStr	Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods
title_full_unstemmed	Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods
title_sort	costs of taxation and benefits of public goods with multiple taxes and goods
publishDate	2012
url	http://hdl.handle.net/10986/5714
_version_	1764396059672444928

Costs of Taxation and Benefits of Public Goods with Multiple Taxes and Goods

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