The optimal supply of public goods in collective choice

Abstract

The aim of this paper is to provide an appropriate method to estimate the elasticity of demand that is to be used to calculate the benefit share which is used for calculating the benefit-burden ratio for median voters and to investigate whether the present tax system leads to an efficient level of public sector output. In addition, the redistribution effects of the current tax system will also be discussed. The degree of bias when the environmental factor was not included in the production function is also considered.