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Benefit Charges for Firms and Households for Maintenance of the Legal System

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  • John Hartwick

    ()
    (Queen's University)

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    Abstract

    We present an aggregate four good model (consumption, investment and two government goods) in which the current flows of one government good are in part pure public intermediate goods. The other public good has "final" services for households. We are interested in a benefit approach to charging for government services that includes government services flowing directly to firms. The legal system is our representative intermediate public good and benefit charges to firms should include part of the maintenance of the legal system.

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    File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1305.pdf
    File Function: First version 2013
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    Bibliographic Info

    Paper provided by Queen's University, Department of Economics in its series Working Papers with number 1305.

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    Length: 26 pages
    Date of creation: Jan 2013
    Date of revision:
    Handle: RePEc:qed:wpaper:1305

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    Keywords: public goods (intermediate); government charges for firms; cost of the legal system;

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    1. R. Manning & J. McMillan, 1979. "Public Intermediate Goods, Production Possibilities, and International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 12(2), pages 243-57, May.
    2. Sandmo, Agnar, 1972. "Optimality rules for the provision of collective factors of production," Journal of Public Economics, Elsevier, vol. 1(1), pages 149-157, April.
    3. McMillan, John, 1978. "A Dynamic Analysis of Public Intermediate Goods Supply in Open Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 665-78, October.
    4. Manning, Richard & Markusen, James R & McMillan, John, 1985. "Paying for Public Inputs," American Economic Review, American Economic Association, vol. 75(1), pages 235-38, March.
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