A note on production taxation and public-input provision

作者:Matsumoto Mutsumi*; Sugahara Kota
来源:Annals of Regional Science, 2017, 59(2): 419-426.
DOI:10.1007/s00168-017-0837-2

摘要

Gugl and Zodrow (Natl Tax J 68:767-802, 2015) derive a general condition for (in)efficient public-input provision under production-tax financing. Their condition is described in terms of log modularity of production technology. This paper shows that in the case of "factor-augmenting" public inputs, the Gugl-Zodrow condition can be characterized in terms of the technical changes caused by public-input provision.