Social Accounting and the Public Sector
AbstractThis paper contributes to the theory of social accounting. As such, it tries to extend earlier literature on the welfare equivalence of the comprehensive net national product in two main directions, both of which refer to the public sector. One is by considering welfare measurement problems associated with redistributive policy and public good provision, when the public revenues are raised by distortionary taxes. The other is by addressing the consequences of a 'federation-like' decision structure, where independent tax and expenditure decisions are made both by the central government and by lower level governments. In particular, the analysis shows how so called vertical fiscal external effects, which are associated with tax base sharing among the central and lower level governments, contribute to social accounting.
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Bibliographic InfoPaper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 644.
Length: 36 pages
Date of creation: 13 Dec 2004
Date of revision:
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Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Web page: http://www.econ.umu.se/
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Welfare measurement; second best; public goods; economic federations;
Find related papers by JEL classification:
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
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