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Optimal provision of public inputs in a second best scenario

Recurso electrónico / Electronic resource
MAP20070040192
Martínez López, Diego
Optimal provision of public inputs in a second best scenario / Diego Martínez López, A. Jesús Sánchez Fuentes. — Madrid : Instituto de Estudios Fiscales, 2005
35 p. ; 21 cm. . — (Papeles de trabajo. Serie economía ; 17)
After obtaining the optimality rules for the provision of publics inputs, a numerical simulation is carried out to compute the level of public spending in each scenario. We find that a second-best rule has to be followed when lump-sum taxes are not available, even though the labor taxes are set optimality. Another result we obtain is that the level of public input provided under the second best escenario is higher than that corresponding to the first best outcome. The effect of changes to some parameters on the level of public input is also studied
1. Crecimiento económico . 2. Análisis económico . 3. Bienes públicos . 4. Política económica . 5. Intervencionismo estatal . 6. Inversiones públicas . 7. Gasto público . I. Sánchez Fuentes, A. Jesús . II. Instituto de Estudios Fiscales (España) . III. Papeles de trabajo. Serie Economía ; 17 . IV. Title.