II, William Barnett; Dauterive, Jerry W; Block, Walter - In: The IUP Journal of Public Finance VI (2008) 4, pp. 62-71
Our claim is a limited one: for strict purposes of economic welfare, subsidies are worse than taxes. This is because while taxes divert resources, necessarily, to the second best alternative, which is pretty good all things considered, subsidies come with no such guarantee. Instead, subsidies...