Bureaucracy, tax system, and economic performance
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
Authors
This paper investigates the consequences for government size, growth and welfare if a selfish bureaucracy provides a congested input. Alternative exogenous tax systems are introduced and numerical analyses are carried out. The welfare optimum is only met under very specific assumptions: proportional congestion, a tax system only consisting of distortionary taxes and a bureaucracy that maximizes the budget's growth rate. Otherwise the relative size of the public sector becomes suboptimally large thus inducing welfare losses. From a welfare economic point of view bureaucratic selfishness is worse than a suboptimal taxing regime that does not (completely) internalize the congestion externalities.
Originalsprache | Englisch |
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Zeitschrift | Journal of Public Economic Theory |
Jahrgang | 8 |
Ausgabenummer | 5 |
Seiten (von - bis) | 839-862 |
Anzahl der Seiten | 24 |
ISSN | 1097-3923 |
DOIs | |
Publikationsstatus | Erschienen - 01.12.2006 |
- Volkswirtschaftslehre