Examines the effect on the marginal cost of public funds of 2 alternative ways in which the tax schedule can be altered: one that maintains the progressivity of the tax schedule and another that rotates the tax schedule. Calculates values of these marginal-cost-of-funds concepts for plausible ranges of key parameters.
Copyright © 1995 Public Finance = Finances Publiques. This article first appeared in Public Finance = Finances Publiques 50, no. 2 (February 1995): 173-81.
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Ahmed, Shaghil. "The Importance of the Tax System in Determining the Marginal Cost of Funds." Public Finance = Finances Publiques 50, no. 2 (February 1995): 173-81.