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Time, self-selection and user charges for public goods

By Dan Anderberg, Fredrik Andersson and Alessandro Balestrino

Abstract

Many public goods generate utility only when combined with a time-input. Important examples include road networks and publicly provided leisure facilities. If it is possible to charge for the time spent using the public good it is generally a second-best Pareto optimal policy to do so even in the absence of congestion. An optimal linear user charge is analysed within a standard optimum income-tax framework. Second-best public good provision in the presence of a user charge is also characterized and factors that influence the direction of optimal distortion of the public good supply are identified

Topics: HB
Publisher: University of Warwick, Department of Economics
Year: 1998
OAI identifier: oai:wrap.warwick.ac.uk:1654

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