Research seminar: Is the marginal cost of public funds equal to one?
- Bjart Holtsmark, SSB
- 29 November 2018
- 11:45 - 12:45
- Auditorium, SSB, Akersveien 26
Bjart Holtsmark https://www.ssb.no/en/forskning/ansatte/bjart-j.holtsmark
Unit for public economics and demographic models, SSB
Is the marginal cost of public funds equal to one?
Abstract: Recently it has been claimed that the marginal cost of public funds (MCF) is one with optimal taxation. If this is confirmed, it could have large consequences for how cost-benefit analyses should be carried out and more generally, the optimal size of the public sector. The present paper discusses the basis for the conclusion that MCF is one with optimal taxation.