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Book details
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Author : Bev Dahlby
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Pages : 352 pages
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Publisher : The MIT Press 2008-04-25
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Language : English
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ISBN-10 : 0262042509
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ISBN-13 : 9780262042505
Book Synopsis
The marginal cost of public funds (MCF) measures the loss incurred by society in raising additional revenues to finance government spending.
The MCF has emerged as one of the most important concepts in public economics; it is a key component in evaluations of tax reforms, public
expenditure programs, and other public policies. The Marginal Cost of Public Funds provides a unified treatment of the MCF, carefully
developing its theoretical foundations in a variety of contexts and describing its application to a wide range of policies -- from excise taxes in
Thailand to public sector borrowing in Canada and the United States. The Marginal Cost of Public Funds develops the basic theory of the MCF
within the framework of public economics and shows how it is related to the traditional measures of the efficiency loss from distortionary
taxation. The MCF concept is then applied to the major sources of revenues for governments -- sales and excise taxes, taxes on labor income,
taxes on the return to capital, public sector borrowing, and intergovernmental grants. This book will be an essential reference for economists and
public policy analysts both in and out of government. Exercises and recommendations for further reading at the end of each main chapter
highlight its usefulness as a supplementary text in advanced undergraduate or graduate courses in public economics.