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DC Field | Value | Language |
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dc.contributor.author | Chatterjee, S | - |
dc.contributor.author | Ghosh, S | - |
dc.date.accessioned | 2009-10-27T16:01:50Z | - |
dc.date.available | 2009-10-27T16:01:50Z | - |
dc.date.issued | 2009 | - |
dc.identifier.citation | Economics and Finance Working papers, Brunel University, 09-07. | en |
dc.identifier.uri | http://bura.brunel.ac.uk/handle/2438/3788 | - |
dc.description.abstract | We examine the impact of scal policy on macroeconomic performance when public goods play a dual role by simultaneously providing both productive and utility services to the private sector. When these services are subject to congestion, a consumption tax is distortionary, generating a dynamic adjustment that contrasts an income tax. The design of optimal scal policy demonstrates the possibilities for using both income- and consumption-based scal instruments as opposed to relying on the income tax alone. In correcting for congestion, an income tax-consumption subsidy combination is the preferred policy when factor-substitutability in production is limited. On the other hand, an increase in the elasticity of substitution in production raises the e cacy of a consumption tax as an alternative to the income tax. Not internalizing the dual bene ts of public goods might lead to misleading predictions regarding the e ect of public policies on welfare. | en |
dc.language.iso | en_US | en |
dc.publisher | Brunel University | en |
dc.subject | Public Goods | en |
dc.subject | Congestion | en |
dc.subject | Consumption-based scal instru-ments | en |
dc.subject | Growth | en |
dc.subject | Welfare | en |
dc.title | Public goods, congestion, and fiscal policy: Do consumption-based instruments matter? | en |
dc.type | Article | en |
Appears in Collections: | Economics and Finance Dept of Economics and Finance Research Papers |
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Buratest.txt | 32 B | Text | View/Open |
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