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Pareto-Efficiency with Three Varieties of Public Input

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  • Feehan, James P

Abstract

The sparse literature on the matter contains three distinct varieties of public inputs: factor-augmenting, firm-augmenting, and semipublic. This paper, using a more general framework than previously employed by others, derives the conditions required for productive efficiency and identifies policy implications associated with the existence of each type of public input. Some important matters are clarified and it is found that the efficiency conditions are not identical in all cases and, even when identical, the policy implications may differ.

Suggested Citation

  • Feehan, James P, 1989. "Pareto-Efficiency with Three Varieties of Public Input," Public Finance = Finances publiques, , vol. 44(2), pages 237-248.
    • Handle: RePEc:pfi:pubfin:v:44:y:1989:i:2:p:237-48
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