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Lindahl Equilibrium
A Lindahl tax is a form of taxation conceived by Erik Lindahl in which individuals pay for public goods according to their marginal benefits. In other words, they pay according to the amount of satisfaction or utility they derive from the consumption of an additional unit of the public good. Lindahl taxation is designed to maximize efficiency for each individual and provide the optimal level of a public good. Lindahl taxes can be seen as an individual's share of the collective tax burden of an economy. The optimal level of a public good is that quantity at which the willingness to pay for one more unit of the good, taken in totality for all the individuals is equal to the marginal cost of supplying that good. Lindahl tax is the optimal quantity times the willingness to pay for one more unit of that good at this quantity. [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Taxation
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs. The first known taxation took place in Ancient Egypt around 3000–2800 BC. A failure to pay in a timely manner ( non-compliance), along with evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labor equivalent. Most countries have a tax system in place, in order to pay for public, common societal, or agreed national needs and for the functions of government. Some levy a flat percentage rate of taxation on personal annual income, bu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Samuelson Condition
The Samuelson condition, authored by Paul Samuelson,Samuelson, Paul A. (1954), The Theory of Public Expenditure, in: Review of Economics and Statistics 36, pp. 386–389. in the theory of public goods in economics, is a condition for the efficient provision of public goods. When satisfied, the Samuelson condition implies that further substituting public for private goods (or vice versa) would result in a decrease of social utility. For an economy with ''n'' consumers the conditions reads as follows: : \sum_^n \text_i = \text MRS''i'' is individual ''i'' marginal rate of substitution and MRT is the economy'marginal rate of transformationbetween the public good and an arbitrarily chosen private good. If the private good is a numeraire good then the Samuelson condition can be re-written as: : \sum_^n \text_i = \text where \text_i is the marginal benefit to each person of consuming one more unit of the public good, and MC is the marginal cost of providing that good. In o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Value Capture
Value capture is a type of public financing that recovers some or all of the value that public infrastructure generates for private landowners. In many countries, the public sector is responsible for the infrastructure required to support urban development. This infrastructure may include road infrastructure, parks, social, health and educational facilities, social housing, climate adaptation and mitigation tools, and more. Such infrastructure typically requires great financial investment and maintenance, and often the financing of such projects leans heavily on the government bodies themselves. Public entities, tasked with creating and maintaining this infrastructure, are constantly in search of mechanisms which can allow for fiscal support of these investments. One such mechanism of financing is Value Capture. Value capture schemes secure and recover a portion of the benefits delivered by public investments, in order to offset the costs of the investment itself. Value Capture stra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Finance
Public finance is the study of the role of the government in the economy. It is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. The purview of public finance is considered to be threefold, consisting of governmental effects on: # The efficient allocation of available resources; # The distribution of income among citizens; and # The stability of the economy. Economist Jonathan Gruber has put forth a framework to assess the broad field of public finance. Gruber suggests public finance should be thought of in terms of four central questions: # When should the government intervene in the economy? To which there are two central motivations for government intervention, Market failure and redistribution of income and wealth. # How might the government intervene? Once the decision is made to intervene the government must ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Choice Theory
Public choice, or public choice theory, is "the use of economic tools to deal with traditional problems of political science".Gordon Tullock, 9872008, "public choice," ''The New Palgrave Dictionary of Economics''. . Its content includes the study of political behavior. In political science, it is the subset of positive political theory that studies self-interested agents (voters, politicians, bureaucrats) and their interactions, which can be represented in a number of ways – using (for example) standard constrained utility maximization, game theory, or decision theory. It is the origin and intellectual foundation of contemporary work in political economy.Alberto Alesina, Torsten Persson, Guido Tabellini, 2006. “Reply to Blankart and Koester's Political Economics versus Public Choice Two Views of Political Economy in Competition,” Kyklos, 59(2), pp. 201–208 In popular use, "public choice" is often used as a shorthand for components of modern public choice theory that ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Benefit Principle
The benefit principle is a concept in the theory of taxation from public finance. It bases taxes to pay for public-goods expenditures on a politically-revealed willingness to pay for benefits received. The principle is sometimes likened to the function of prices in allocating private goods. In its use for assessing the efficiency of taxes and appraising fiscal policy, the benefit approach was initially developed by Knut Wicksell (1896) and Erik Lindahl (1919), two economists of the Stockholm School. Wicksell's near-unanimity formulation of the principle was premised on a just income distribution. The approach was extended in the work of Paul Samuelson, Richard Musgrave,Bernd Hansjürgens, 2000. "The Influence of Knut Wicksell on Richard Musgrave and James Buchanan", ''Public Choice'', 103(1/2), pp95116. and others. It has also been applied to such subjects as tax progressivity, corporation taxes, and taxes on property or wealth. The unanimity-rule aspect of Wicksell's ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lindahl Tax Example Figure 3
Lindahl is a Swedish surname which may refer to People * Anna Lindahl (1904–1952), Swedish film actress *Axel Lindahl (1841–1906), Swedish photographer * Axel Lindahl (athlete) (born 1995), Swedish footballer * Axel Lindahl (footballer) (1841–1906), Swedish photographer * Bruce Lindahl (1919–2014), American politician *Cathrine Lindahl (born 1970), Swedish curler *Erik Lindahl (1891–1960), Swedish economist * Fredrik Lindahl (born 1983), Swedish handball player * Fredrik Lindahl (politician) (born 1987), Swedish politician *Hans Lindahl (born 1954), Swedish comic book artist *Hedvig Lindahl (born 1983), Swedish football (soccer) goalkeeper * John Lindahl (born 1996), American singer & songwriter * Josua Lindahl (1844–1914), Swedish scientist * Karl Lindahl (1890–1960), Swedish gymnast who competed in the 1920 Summer Olympics *Karl Lindahl (architect) (1874–1930), Finnish architect of Swedish origin *Marita Lindahl (1938–2017), Finnish model and 1 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lindahl Tax Example Figure 2
Lindahl is a Swedish surname which may refer to People * Anna Lindahl (1904–1952), Swedish film actress *Axel Lindahl (1841–1906), Swedish photographer * Axel Lindahl (athlete) (born 1995), Swedish footballer * Axel Lindahl (footballer) (1841–1906), Swedish photographer * Bruce Lindahl (1919–2014), American politician *Cathrine Lindahl (born 1970), Swedish curler *Erik Lindahl (1891–1960), Swedish economist * Fredrik Lindahl (born 1983), Swedish handball player * Fredrik Lindahl (politician) (born 1987), Swedish politician *Hans Lindahl (born 1954), Swedish comic book artist *Hedvig Lindahl (born 1983), Swedish football (soccer) goalkeeper * John Lindahl (born 1996), American singer & songwriter * Josua Lindahl (1844–1914), Swedish scientist * Karl Lindahl (1890–1960), Swedish gymnast who competed in the 1920 Summer Olympics *Karl Lindahl (architect) (1874–1930), Finnish architect of Swedish origin *Marita Lindahl (1938–2017), Finnish model and 1 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Lindahl Tax Example Figure 1
Lindahl is a Swedish surname which may refer to People * Anna Lindahl (1904–1952), Swedish film actress *Axel Lindahl (1841–1906), Swedish photographer * Axel Lindahl (athlete) (born 1995), Swedish footballer * Axel Lindahl (footballer) (1841–1906), Swedish photographer * Bruce Lindahl (1919–2014), American politician *Cathrine Lindahl (born 1970), Swedish curler *Erik Lindahl (1891–1960), Swedish economist * Fredrik Lindahl (born 1983), Swedish handball player * Fredrik Lindahl (politician) (born 1987), Swedish politician *Hans Lindahl (born 1954), Swedish comic book artist *Hedvig Lindahl (born 1983), Swedish football (soccer) goalkeeper * John Lindahl (born 1996), American singer & songwriter * Josua Lindahl (1844–1914), Swedish scientist * Karl Lindahl (1890–1960), Swedish gymnast who competed in the 1920 Summer Olympics *Karl Lindahl (architect) (1874–1930), Finnish architect of Swedish origin *Marita Lindahl (1938–2017), Finnish model and 1 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marginal Rate Of Substitution
In economics, the marginal rate of substitution (MRS) is the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility. At equilibrium consumption levels (assuming no externalities), marginal rates of substitution are identical. The marginal rate of substitution is one of the three factors from marginal productivity, the others being marginal rates of transformation and marginal productivity of a factor. As the slope of indifference curve Under the standard assumption of neoclassical economics that goods and services are continuously divisible, the marginal rates of substitution will be the same regardless of the direction of exchange, and will correspond to the slope of an indifference curve (more precisely, to the slope multiplied by −1) passing through the consumption bundle in question, at that point: mathematically, it is the implicit derivative. MRS of X for Y is the amount of Y which a consumer ca ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vickrey–Clarke–Groves Auction
A Vickrey–Clarke–Groves (VCG) auction is a type of sealed-bid auction of multiple items. Bidders submit bids that report their valuations for the items, without knowing the bids of the other bidders. The auction system assigns the items in a socially optimal manner: it charges each individual the harm they cause to other bidders. It gives bidders an incentive to bid their true valuations, by ensuring that the optimal strategy for each bidder is to bid their true valuations of the items; it can be undermined by bidder collusion and in particular in some circumstances by a single bidder making multiple bids under different names. It is a generalization of a Vickrey auction for multiple items. The auction is named after William Vickrey, Edward H. Clarke, and Theodore Groves for their papers that successively generalized the idea. The VCG auction is a specific use of the more general VCG mechanism. While the VCG auction tries to make a socially optimal allocation of items, V ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Goods Game
The public goods game is a standard of experimental economics. In the basic game, subjects secretly choose how many of their private tokens to put into a public pot. The tokens in this pot are multiplied by a factor (greater than one and less than the number of players, N) and this " public good" payoff is evenly divided among players. Each subject also keeps the tokens they do not contribute. Introduction Public goods games are fundamental in experimental economics. The nature of the experiment is incentives and the problem of free riding. Public goods games investigate the incentives of individuals who free-ride off individuals who are contributing to the common pool. A public goods game investigates behavioural economics and the actions of the players in the game. In this process, it seeks to use behavioural economics to understand the decisions of its players. It extends further to free-riding, which has far-reaching applications to environmental, managerial and social econ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
