“Notre-taxe de Paris”, tax expenditures with two public goods

Rueda, Valeria; Wilemme, Guillaume

Abstract

This article presents a new efficiency-equity trade-off when setting up tax rebates in the presence of multiple goods. Although tax rebates can efficiently raise more public funds, they can also alter the mix of public goods. We find the condition for a Pareto-improving rebate, under which the trade-off vanishes. Finally, we establish the optimal tax rebate.

Citation

Rueda, V., & Wilemme, G. (2023). “Notre-taxe de Paris”, tax expenditures with two public goods. Revue Economique, 74(6), 1053-1065. https://doi.org/10.3917/reco.746.1053

• Journal Article Type: Article
• Acceptance Date: Mar 29, 2022
• Publication Date: 2023-11
• Deposit Date: May 27, 2022
• Publicly Available Date: Dec 1, 2024
• Print ISSN: 0035-2764
• Electronic ISSN: 1950-6694
• Publisher: Presses de Sciences Po
• Peer Reviewed: Peer Reviewed
• Volume: 74
• Issue: 6
• Pages: 1053-1065
• DOI: https://doi.org/10.3917/reco.746.1053
• Public URL: https://nottingham-repository.worktribe.com/output/8226121
• Publisher URL: https://www.cairn-int.info/journal-revue-economique-2023-6-page-1053.htm