Public Good Provision with Optimal and Non-optimal Commodity Taxation: The Single-Consumer Case
by
David E. Wildasin Department of Economics Indiana University Bloomington, IN 47405 USA
Abstract
The criterion for welfare-enhancing changes in the level of public good provision is studied in a model with optimal, and more general, commodity tax structures. The welfare rule is sensitive to the precise nature of interactions between public spending and (ordinary or compensated) demands for taxed goods.
