Provisión eficiente de inversión pública financiada con impuestos distorsionantes
AbstractIn this paper we provide a simple general equilibrium model with public investment and distorting taxes. First, we obtain the optimality conditions for public investment provision under different tax systems. Also we discuss whether tax revenue is increased by the complementary between productive public spending and taxed goods, ceteris paribus. Second, a more restrictive framework for government is presented: tax rates are fixed ex ante. This case is simulated numerically and we find some interesting consequences on public investment levels, total and marginal cost of public funds and tax revenue.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2002/08.
Length: 38 pages
Date of creation: 2002
Date of revision:
Infrastructures; taxes; efficiency; social welfare.;
Find related papers by JEL classification:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
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