Location of Repository

Is the public sector too large in a democracy?

By Clive D. Fraser

Abstract

The public sector supplies a club good financed by either a head tax or proportional taxation on exogenous incomes in a democracy. For a class of utility functions and club quality functions, the optimal club quality is independent of the income distribution, and hence of the identity of the median voter. With ”uniform and universal” public provision , the median voter chooses the head tax or proportional tax rate. This can result in lower levels of club goods in either financing regime than would occur in the first best. However, provision in all the latter three regimes can be lower than would occur via market supply by a ”not for profit” organisation

Topics: club good, democracy, taxation
Publisher: Dept. of Economics, University of Leicester.
Year: 2003
OAI identifier: oai:lra.le.ac.uk:2381/4421

Suggested articles

Preview

Citations

  1. (1996). A model of political competition with citizen-candidates,” doi
  2. (1986). A Pigouvian rule for the optimal provision of public goods,” doi
  3. (1981). A rational theory of the size of government,” doi
  4. (1997). An economic model of representative democracy,” doi
  5. (1965). An economic theory of clubs,” doi
  6. (1998). Does the median voter model explain the size of government?: Evidence from the states,
  7. Endogenous labour supply in the theory of clubs.”
  8. Highway Benefits: An Analytical Framework,
  9. (1986). Interest groups and the size of government,” doi
  10. (2003). Is the public sector too large in an economy with club goods?” doi
  11. (1973). On a class of equilibrium conditions for majority rule,” doi
  12. (1980). On the monopolistic provision of excludable public goods,” doi
  13. (1996). On the provision of excludable public goods,” doi
  14. (1992). Pressure groups and redistribution,” doi
  15. (2003). Public Choice III, doi
  16. (1999). Public goods, club goods, and the measurement of crowding,” doi
  17. (1991). Public provision of private goods and the redistribution of income,” doi
  18. (1974). Qualitative returns to scale and the optimum financing of environmental policies,” doi
  19. (2000). Rules and levels in the provision of public goods: The role of complementarities between the public good and taxed
  20. (1980). The growth of government,” doi
  21. (1943). The interpretation of voting in the allocation of economic resources,” doi
  22. (2001). The provision of public goods under alternative electoral incentives,” doi
  23. (1986). The Theory of Externalities, Public Goods and Club Goods, Cambridge University Press. (2nd Edn., doi
  24. (1977). Voting over income tax schedules,” doi
  25. (2000). When do distortionary taxes reduce the optimal supply of public goods?” doi
  26. (2001). When is e!ciency separable from distribution in the provision of club goods? A further analysis.”
  27. When is e!ciency separable from distribution in the provision of club goods?”

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.