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Pigou's conjecture was that under costly taxation public expenditures should not reach the point where marginal benefits equal marginal costs. In the treatment here, public expenditures (and environmental protection) may provide public goods for consumption but also collective inputs for production. When the benefits are in production, the cost of funds is irrelevant. Why? Collective inputs benefit goods that are taxed, while for public goods the shadow price of funds reduces provision as if they were.
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Public expenditures and environmental protection: when is the cost of funds irrelevant?
2000, World Bank, Development Research Group, Public Economics
Electronic resource
in English
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Book Details
Edition Notes
Also available in print.
Includes bibliographical references (p. 26-27).
Title from title screen as viewed on Sept. 30, 2002.
"December 2000"--Cover.
Moce of access: World Wide Web.
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- Created April 1, 2008
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July 29, 2012 | Edited by VacuumBot | Updated format '[electronic resource] :' to 'Electronic resource' |
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