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The Voluntary Exchange Theory of Public Economy


  • Richard Abel Musgrave


I. The voluntary exchange theory: exposition, 214 — II. Discussion: (1) the underlying assumptions, 218; (2) the nature of the pricing process implied, 221; (3) the voluntary exchange theory as a solution to the problem of justice in taxation, 226; (4) the neutrality condition as criterion for the conduct of the revenue-expenditure process, 228; summary of objections, 231 — III. The planning interpretation of public economy as an alternative approach, 232. — The planning decisions, 232. — The social value scale predetermined, 233. — The analysis of direct and indirect effects, 234.

Suggested Citation

  • Richard Abel Musgrave, 1939. "The Voluntary Exchange Theory of Public Economy," The Quarterly Journal of Economics, Oxford University Press, vol. 53(2), pages 213-237.
  • Handle: RePEc:oup:qjecon:v:53:y:1939:i:2:p:213-237.

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    1. Denvil Duncan & John Graham & Venkata Nadella & Ashley Bowers & Stacey Giroux, 2014. "Demand for Benefit Taxation: Evidence From Public Opinion on Road Financing," Public Budgeting & Finance, Wiley Blackwell, vol. 34(4), pages 120-142, December.
    2. Thomas Grebel, 2011. "Innovation and Health," Books, Edward Elgar Publishing, number 14375.
    3. Hans-Werner Sinn, 2007. "Please Bring me the New York Times – On the European Roots of Richard Abel Musgrave," CESifo Working Paper Series 2050, CESifo Group Munich.
    4. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    5. Melle Marco C., 2014. "Eine europäische Bemessungsgrundlage für die Körperschaftsteuer? Konzeption und ordnungsökonomische Analyse / Conceptual design and constitutional economics analysis of a European tax base for corpora," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 133-156, January.
    6. repec:prg:jnlaop:v:2017:y:2017:i:3:id:583:p:68-83 is not listed on IDEAS
    7. repec:eee:ecoser:v:23:y:2017:i:c:p:9-17 is not listed on IDEAS
    8. Silvestri, Paolo, 2015. "Anthropology of freedom and tax justice: between exchange and gift. Thoughts for an interdisciplinary research agenda," MPRA Paper 67644, University Library of Munich, Germany.
    9. repec:eee:ecoser:v:22:y:2016:i:pb:p:228-237 is not listed on IDEAS
    10. Andrea Robbett, 2016. "Community dynamics in the lab," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(3), pages 543-568, March.
    11. Markt Jörg, 2001. "Knut Wicksell: Zum Geburtstag des Begründers einer kritischen Vertragstheorie," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 52(1), pages 189-214, January.
    12. Maxime Desmarais-Tremblay, 2014. "On the Definition of Public Goods. Assessing Richard A. Musgrave's contribution," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00951577, HAL.
    13. Barrow, Lisa, 2002. "School choice through relocation: evidence from the Washington, D.C. area," Journal of Public Economics, Elsevier, vol. 86(2), pages 155-189, November.
    14. Debra Hevenstone & Ben Jann, 2016. "Fiscal Federalism and Tax Equalization: The potential for progressive local taxes," University of Bern Social Sciences Working Papers 19, University of Bern, Department of Social Sciences.
    15. Charles B. Blankart, 2016. "Public Choice and Public Finance: A Survey," CESifo Working Paper Series 5819, CESifo Group Munich.
    16. Ismail Adams, 1997. "South African fiscal relations," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(1), pages 54-70, February.
    17. repec:kap:pubcho:v:172:y:2017:i:1:d:10.1007_s11127-017-0410-7 is not listed on IDEAS
    18. Emmanuel Innocents EDOUN, 2016. "Impact Of Knowledge Management In Public Sector Economy In Africa," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(1), pages 107-114, November.
    19. Braña Pino, Francisco Javier, 2004. "Teoría de los bienes públicos y aplicaciones prácticas. Presentación de un número monográfico sobre“Bienes públicos”/The Theory of Public Goods and its Empirical Applications. Introduction to a Monogr," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 22, pages 177-185, Agosto.
    20. Paula Garda & Volker Ziemann, 2014. "Economic Policies and Microeconomic Stability: A Literature Review and Some Empirics," OECD Economics Department Working Papers 1115, OECD Publishing.
    21. Maxime Desmarais-Tremblay, 2017. "Paternalism and the public household. On the domestic origins of public economics," Documents de travail du Centre d'Economie de la Sorbonne 17032, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    22. Banful, Afua Branoah, 2009. "Do institutions limit clientelism?: A study of the district assemblies common fund in Ghana," IFPRI discussion papers 855, International Food Policy Research Institute (IFPRI).

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