Recognizing that the lack of financial resources to support the provision of basic services and to fund local development plans is a critical concern at the local level to attain improvements in key human development outcomes, the paper discusses the different sources of LGU revenues, both...

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....