The cost of public funds in Australia

Campbell, H. F. and Bond, K. A. (1997) The cost of public funds in Australia. Economic Record, 73 220: 22-34. doi:10.1111/j.1475-4932.1997.tb00976.x


Author Campbell, H. F.
Bond, K. A.
Title The cost of public funds in Australia
Journal name Economic Record   Check publisher's open access policy
ISSN 0013-0249
1475-4932
Publication date 1997-03
Year available 1997
Sub-type Article (original research)
DOI 10.1111/j.1475-4932.1997.tb00976.x
Volume 73
Issue 220
Start page 22
End page 34
Total pages 13
Place of publication Richmond, VIC Australia
Publisher Wiley-Blackwell Publishing Asia
Collection year 1998
Language eng
Formatted abstract
A model of labour supply is used to calculate Australias marginal cost of public funds, which is the appropriate cut-off benefit/cost ratio for an additional public project. The labour supply model incorporates effective average and marginal tax rates faced by the representative household in each gross income decile. These rates are estimated from the ABS 1988-89 Household Expenditure Survey. A simulation analysis is performed to calculate the effect on labour supply of a 1 per cent increase in marginal tax rates. The estimated changes in tax revenues and deadweight loss in each decile are used to estimate the marginal cost of public funds.
Keyword Marginal Welfare Cost
Good Provision
Taxation
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
 
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Created: Tue, 25 Jun 2013, 16:33:19 EST by Harry Campbell on behalf of School of Economics