Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192107 
Authors: 
Year of Publication: 
1994
Series/Report no.: 
Discussion Papers No. 123
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
With address to developing countries, this paper derives some formulae for the optimal price structure for publicly provided private goods. A general equilibrium model is examined, which makes it possible to incorporate features like distributional social objectives and public profit constraints in the analysis. The model identifies different sources which may cause the optimal public price structure to deviate from marginal cost pricing in a second-best optimum. The main result is that the optimal public price structure includes an implicit subsidy on commodities which are consumed relatively intensely by transfer-deserving households, whereas the same price structure involves an implicit tax on publicly provided luxuries.
Subjects: 
Equity
publicly provided private goods
income distribution.
JEL: 
D63
H42
O15
Document Type: 
Working Paper
Document Version: 
Digitized Version

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