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A note on production taxation and public-input provision

Author

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  • Mutsumi Matsumoto

    (Ritsumeikan University)

  • Kota Sugahara

    (Kyoto Sangyo University)

Abstract

Gugl and Zodrow (Natl Tax J 68:767–802, 2015) derive a general condition for (in)efficient public-input provision under production-tax financing. Their condition is described in terms of log modularity of production technology. This paper shows that in the case of “factor-augmenting” public inputs, the Gugl–Zodrow condition can be characterized in terms of the technical changes caused by public-input provision.

Suggested Citation

  • Mutsumi Matsumoto & Kota Sugahara, 2017. "A note on production taxation and public-input provision," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 419-426, September.
    • Handle: RePEc:spr:anresc:v:59:y:2017:i:2:d:10.1007_s00168-017-0837-2
    DOI: 10.1007/s00168-017-0837-2
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    Cited by:

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    3. Elisabeth Gugl & George R. Zodrow, 2019. "Tax competition and the efficiency of “benefit-related” business taxes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(3), pages 486-505, June.
    4. Johannes Becker, 2021. "Second-Best Source-Based Taxation of Multinational Firms," CESifo Working Paper Series 9329, CESifo.

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    More about this item

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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