A Note on Cost‐Benefit Analysis, the Marginal Cost of Public Funds, and the Marginal Excess Burden of Taxes

In this note we discuss how to treat taxes in a cost-benefit analysis (CBA). In particular we relate the shadow price of taxes in CBA to the concepts the marginal cost of public funds MCPF) and the marginal excess burden (MEB) of taxes. In particular we demonstrate that the MCPF is equal to one plus the MEB for a marginal increase in a distortionary tax

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Year of publication:	2010
Authors:	Johansson, Per-Olov
Other Persons:	Kriström, Bengt (contributor)
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Excess Burden \| Excess burden \| Theorie \| Theory \| Optimale Besteuerung \| Optimal taxation \| Steuerbelastung \| Tax burden

Extent:	1 Online-Ressource (15 p)
Series:	CERE Working Paper ; No. 2010:5
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 8, 2010 erstellt
Other identifiers:	10.2139/ssrn.1586270 [DOI]
Classification:	H21 - Efficiency; Optimal Taxation ; H41 - Public Goods ; H43 - Project Evaluation; Social Discount Rate ; Q51 - Valuation of Environmental Effects
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013145074