Optimal Taxation and Public Production with Budget Constraints

  • Alain Bernard
Part of the International Economic Association Conference Volumes book series (IEA)


This paper proposes a formulation of problems of public economics—taxation, public production—within the framework of one-kind allocation models. It differs from the similar approaches by Boiteux and by Diamond and Mirrlees in that the (second-best) models are written in primal language—specifically without the use of indirect utility functions—and, thus, are nearer to usual Paretian formulations. The main topics are the conditions of production efficiency in the case of profit taxation, marketable public goods, and proportional indirect taxation with sectoral budget constraints.


Budget Constraint Private Firm Public Economic Price Vector Public Enterprise 
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Copyright information

© International Economic Association 1977

Authors and Affiliations

  • Alain Bernard
    • 1
  1. 1.Commissariat Général du PlanParisFrance

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