Cost-Benefit Analysis and the Marginal Cost of Public Funds

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Lundholm, Michael;
  • Subject: Cost–benefit; optimal taxation; marginal cost of public funds
    • jel: jel:H21 | jel:H43
    acm: ComputingMilieux_GENERAL | ComputingMilieux_LEGALASPECTSOFCOMPUTING

The marginal cost of public funds defined as the ratio between the shadow price of tax revenues and the population average of the social marginal utility of income, is analysed within an explicit cost–benefit context. It is shown that for an optimal tax system the measu... View more
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