The marginal cost of funds with nonseparable public spending
AbstractThis article provides new calculations of the welfare effects of fiscal changes when the publicly provided good is nonseparable in utility and production so that it affects economic agents' marginal decisions. The authors' results show that these nonseparabilities significantly alter the marginal cost of funds (MCF) that previous studies have calculated. The authors also report estimates of the nonseparable marginal benefits (NSMB) associated with aggregate government purchases. The net marginal cost offunds (NMCF ), which is equal to MCF - NSMB, is in general positive over a wide range of parameter values that encompass empirically relevant specifications. Thus the nonseparable benefits by themselves are not sufficient for a marginal increase in aggregate government purchases of goods and services to be worthwhile.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number 94-5.
Date of creation: 1994
Date of revision:
Other versions of this item:
- Shaghil Ahmed & Dean Croushore, 1996. "The Marginal Cost of Funds With Nonseparable Public Spending," Public Finance Review, , vol. 24(2), pages 216-236, April.
- Ahmed, S. & Croushore, D., 1992. "The Marginal Cost of Funds with Nonseparable Public Spending," Papers 9-92-7, Pennsylvania State - Department of Economics.
- Shaghil Ahmed & Dean Croushore, 1992. "The marginal cost of funds with nonseparable public spending," Working Papers 92-2, Federal Reserve Bank of Philadelphia.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Warlters, Michael & Auriol, Emmanuelle, 2005. "The marginal cost of public funds in Africa," Policy Research Working Paper Series 3679, The World Bank.
- Can Erbil, 2004. "Trade Taxes Are Expensive," International Trade 0409002, EconWPA.
- Auriol, Emmanuelle & Walters, Michael, 2009.
"The Marginal Cost of Public Funds and Tax Reform in Africa,"
TSE Working Papers
09-110, Toulouse School of Economics (TSE).
- Auriol, Emmanuelle & Warlters, Michael, 2012. "The marginal cost of public funds and tax reform in Africa," Journal of Development Economics, Elsevier, vol. 97(1), pages 58-72.
- Auriol, Emmanuelle & Warlters, Michael, 2012. "The Marginal Cost of Public Funds and Tax Reform in Africa," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Kaplow, Louis, 2006.
"Public goods and the distribution of income,"
European Economic Review,
Elsevier, vol. 50(7), pages 1627-1660, October.
- Liu, Liqun, 2003. "A marginal cost of funds approach to multi-period public project evaluation: implications for the social discount rate," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1707-1718, August.
- José Manuel González-Páramo, . "Midiendo El Coste Marginal En Bienestar De Una Reforma Impositiva," Working Papers 32-02 Classification-JEL , Instituto de Estudios Fiscales.
- José Manuel González Páramo, 2003. "Midiendo el coste marginal en bienestar de una reforma impositiva," Hacienda Pública Española, IEF, vol. 166(3), pages 115-147, September.
- Louis Kaplow, 1997. "Should the Government's Allocation Branch be Concerned about the Distortionary Cost of Taxation and Distributive Effects?," NBER Working Papers 4566, National Bureau of Economic Research, Inc.
- Devarajan, Shantayanan & Robinson, Sherman, 2002. "The influence of computable general equilibrium models on policy," TMD discussion papers 98, International Food Policy Research Institute (IFPRI).
- Strand, Jon, 2009. ""Revenue management"effects related to financial flows generated by climate policy," Policy Research Working Paper Series 5053, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul).
If references are entirely missing, you can add them using this form.