All major pubic finance texts offer some treatment of benefit-cost analysis. The typical treatment, however, glosses over the welfare economic foundations of modern benefit-cost analysis and therefore denies the student a broader view of the subject. The student might be misled to believe that,...

Musgrave, m his Theory of Public Finance, argues that the pnce effect of a unit tax Abstract under monopoly is one half the effect under competition when demand and supply curves are linear. It is shown here that this rule applies only for the constant-cost case. For an increasing supply...