IDEAS home Printed from
   My bibliography  Save this paper

On Equity and Public Pricing in Developing Countries




With address to developing countries, this paper derives some formulae for the optimal price structure for publicly provided private goods. A general equilibrium model is examined, which makes it possible to incorporate features like distributional social objectives and public profit constraints in the analysis. The model identifies different sources which may cause the optimal public price structure to deviate from marginal cost pricing in a second-best optimum. The main result is that the optimal public price structure includes an implicit subsidy on commodities which are consumed relatively intensely by transfer-deserving households, whereas the same price structure involves an implicit tax on publicly provided luxuries.

Suggested Citation

  • Klaus Mohn, 1994. "On Equity and Public Pricing in Developing Countries," Discussion Papers 123, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:123

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Equity; publicly provided private goods; income distribution.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:123. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (L Maasø). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.