Aggregate marginal costs of public funds
DOI:
https://doi.org/10.3326/pse.46.2.3Keywords:
marginal costs of public funds, discrete choice labour supply, compensated labour supplyAbstract
In this paper, we discuss aggregate measures of marginal costs of public funds (MCF) in populations that are heterogeneous with respect to observed as well as unobserved characteristics. We first discuss how to compute MCF in selected examples of traditional (textbook) labour supply models. Next, we review two types of discrete labour supply models proposed in the literature. Subsequently, we discuss how to calculate aggregate measures of MCF for discrete labour supply models. Finally, we apply an estimated two-sector discrete labour supply model to compute MCF based on Norwegian data.
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Published
2022-06-01
How to Cite
Dagsvik, J. K., & Strøm, S. (2022). Aggregate marginal costs of public funds. Public Sector Economics - Submission Site, 46(2), 239–260. https://doi.org/10.3326/pse.46.2.3
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Copyright (c) 2022 John K. Dagsvik, Steinar Strøm
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