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Adaptation, taxation and public goods
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
Freie Universität, Berlin.
2014 (English)Report (Other academic)
Abstract [en]

This paper shows how the first-best and second-best rules for optimal public good provision depend on the adaptation to private and public consumption. Adaptation in private consumption typically leads to over-provision relative to the Samuelson condition, while adaptation in public consumption works the other way around. The two sources of adaptation only cancel out in the extreme case of full adaptation.

Place, publisher, year, edition, pages
Umeå: Umeå universitet , 2014. , 6 p.
Umeå economic studies, ISSN 0348-1018 ; 902
Keyword [en]
Public goods, adaptation, habit-formation, optimal taxation
National Category
Economics and Business
Research subject
URN: urn:nbn:se:umu:diva-107704OAI: diva2:849074
Swedish Research Council, 421-2010-1420
Available from: 2015-08-27 Created: 2015-08-27 Last updated: 2015-10-28Bibliographically approved

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ReferencesLink to record
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