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The optimal provision of public inputs in a second best scenario

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  • Diego Martinez-Lopez

    (centrA and University Pablo de Olavide)

Abstract

This paper provides a simple general equilibrium model with productive public spending and distorting taxes. The optimal conditions for the provision of public inputs are obtained under different tax systems. Also we discuss which factors affect the marginal cost of public funds.

Suggested Citation

  • Diego Martinez-Lopez, 2004. "The optimal provision of public inputs in a second best scenario," Economics Bulletin, AccessEcon, vol. 8(3), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-04h40001
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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