Optimal Fiscal Policies, Congestion and Over-entry

機構典藏 > College of Business and Management > Graduate Institute & Department of Industrial Economics > Journal Article > Item 987654321/23885

Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/23885

Title:	Optimal Fiscal Policies, Congestion and Over-entry
Authors:	Chang, Juin-jen;Hung, Hsiao-wen;Shieh, Jhy-yuan;Lai, Ching-chong
Contributors:	淡江大學產業經濟學系
Keywords:	Optimal fiscal policies;Congestion;Entry
Date:	2007-03
Issue Date:	2009-11-30 17:57:38 (UTC+8)
Publisher:	Chichester: Wiley-Blackwell Publishing Ltd.
Abstract:	By shedding light on market imperfections and the congestion of public goods, we show that free entry in a market equilibrium will lead to excessive entry relative to the social optimum. Moreover, by specifying a generalized congestion function, it is also shown that different fiscal policies, including labor income tax, capital income tax and government expenditure, play a distinct role in terms of remedying market distortions. Specifically, optimal income taxes decrease with the degree of market imperfections in order to remove the monopoly inefficiency, while they increase with the degree of congestion in order to remedy the adverse externality caused by congestion distortion. Since a higher degree of increasing returns to an expansion in the variety of intermediate goods is found to intensify the congestion effect of government infrastructure expenditure, the optimal rule of government expenditure proposed by Barro (1990) should be modified.
Relation:	Scandinavian Journal of Economics 109(1), pp.137-151
DOI:	10.1111/j.1467-9442.2007.00484.x
Appears in Collections:	[Graduate Institute & Department of Industrial Economics] Journal Article

Files in This Item:

File	Description	Size	Format
index.html		0Kb	HTML	115	View/Open
Optimal Fiscal Policies, Congestion and Over-entry.pdf		874Kb	Adobe PDF	1	View/Open