Bessho, Shun-ichiro; Hayashi, Masayoshi - East Asian Bureau of Economic Research (EABER) - 2005
This paper operationalizes Dahlby's (1998) theoretical analysis on the social marginal cost of public funds (SMCF) with microdata on Japanese prime-age males. Our exercise, however, is more than an application. First, we derive the formula for the SMCF that differentiates every individual....
