| Popis: |
The paper argues that the appropriate approach to determine public good provision fi nanced by distortionary taxes should depend on the available tax regime. If a suffi ciently rich tax regime exists, one could rely on the Pareto criterion, which would be less information-demanding than a social welfare approach re- quiring access to social welfare weights assigned to various groups. The discussion is related to a number of representative tax regimes and cost-benefi t approaches in the literature. It is also argued that, whatever the available tax regime, cost-benefi t analysis runs into problems unless one can assume that taxes are set optimally. |
