Financing Public Goods

@article{Roberts1987FinancingPG,
  title={Financing Public Goods},
  author={Russell D. Roberts},
  journal={Journal of Political Economy},
  year={1987},
  volume={95},
  pages={420 - 437}
}
  • R. Roberts
  • Published 1 April 1987
  • Economics
  • Journal of Political Economy
Public goods can be financed by direct taxation or a subsidy to private spending. This paper examines the relative efficiency and distributional consequences of the two methods. Efficiency is shown to depend on the price elasticity of private spending and the trade- off between public and private spending. When this trade-off is dollar for dollar, however, a subsidy is always more efficient than direct taxation. The gains from a subsidy are larger for a mixed good than for a pure public good… 
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  • R. Roberts
  • Economics
    Journal of Political Economy
  • 1984
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