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The doctrine of consumer sovereignty is applied to the provision of social goods in so far as the consumer buys national defence, police service, fire protection and electricity or water supply from the public sector of his own choice and according to the benefits received just as he buys food,
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is the primary criticism given for limiting the scope of the benefit principle. When information about marginal benefits is available only from the individuals themselves, they tend to under report their valuation for a particular good, this gives rise to the
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Until people are made to bear the full costs of their decisions, those decisions are unlikely to be socially sound, in this as in other areas of public policy. - Bird, Richard M. (1976).
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Thus, considered in themselves, in their own nature, in their normal state, and apart from all abuses, public services are, like private services, purely and simply acts of exchange. -
582:. If taxpayers had to pay taxes anyway, but could choose where their taxes went (without the possibility of secret rebates or similar), then they would have no incentive to hide their
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The benefit principle takes a market-oriented approach to taxation. The objective is to accurately determine the optimal amount of revenue that should be spent on public goods.
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578:. Each individual can lower his tax cost by under reporting his benefits derived from the public good or service. One solution would be to implement
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clothes, fuel, tooth brushes and automobiles from the private producers. - P.C. Jain (1989), The
Economics of Public Finance, 2nd ed., v. 1, p.
213:. The unanimity-rule aspect of Wicksell's approach in linking taxes and expenditures is cited as a point of departure for the study of
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Here are a few of the public services that are currently funded, in some part, on the basis of the benefit principle...
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Charging for Public
Services: A New Look at an Old Idea by Richard M. Bird Review by: Wayne R. Thirsk
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Bernd Hansjürgens, 2000. "The
Influence of Knut Wicksell on Richard Musgrave and James Buchanan",
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of limited resources...it is less likely that funds will be overinvested in low priority programs.
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678:, ch. 3, "The Theory of Social Goods," C. Efficient Provision of Social Goods, p.68.
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More equitable/fair because taxpayers, like consumers, would "pay for what they get"
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V. The
Constitution of Economic Policy, Nobel Prize lecture. Republished in 1987,
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Fritz
Neumark and Charles E. McLure, Jr., 2013. "Taxation," The Benefit Principle,
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National park admission fees (only paid by the people who visit public parks)
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for benefits received. The principle is sometimes likened to the function of
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Why markets do not fail. Buchanan on voluntary cooperation and externalities
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Public college tuition (only paid by the people who attend public colleges)
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Taxes are more akin to prices that people would pay for government services
190:. Wicksell's near-unanimity formulation of the principle was premised on a
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332:- taxpayers would have a better understanding of the costs of public goods
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The influence of Knut
Wicksell on Richard Musgrave and James Buchanan
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541:. Statements consisting only of original research should be removed.
378:. Statements consisting only of original research should be removed.
263:. Statements consisting only of original research should be removed.
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Seligman, R.E. - Progressive
Taxation in Theory and Practice. 1908
312:- specific rather than general...charges are more direct...so the
205:, and others. It has also been applied to such subjects as
688:, pp. 72-119 for discussion and the relevant publications.
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User
Charges for Public Services: Potentials and Problems
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as the "foremost proponents of the 'benefit principle'."
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488:
Charging for Public
Services: A New Look at an Old Idea
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Provides the foundation for voluntary exchange theory.
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Bridge tolls (only paid by people who use the bridge)
104:. Please help to ensure that disputed statements are
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Bus fares (only paid by the people who take the bus)
178:, the benefit approach was initially developed by
737:Richard A. Musgrave and Peggy B. Musgrave, 1973.
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885:
873:Public Sector Economics For Developing Countries
879:Global Perspectives on E-Commerce Taxation Law
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209:, corporation taxes, and taxes on property or
460:. Consider transferring direct quotations to
810:Bird, Richard M. and Tsiopoulos, Thomas -
741:(under "Subject Index," Benefit Principle).
728:, ch. 4, "The Benefit Approach," pp. 71-89.
419:(only paid by the people who purchase fuel)
197:. The approach was extended in the work of
557:Learn how and when to remove this message
394:Learn how and when to remove this message
279:Learn how and when to remove this message
124:Learn how and when to remove this message
66:Learn how and when to remove this message
686:Classics in the Theory of Public Finance
100:Relevant discussion may be found on the
29:This article includes a list of general
680: • Richard A. Musgrave and
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752:"The Constitution of Economic Policy,"
855:The Pure Theory of Public Expenditure
739:Public Finance in Theory and Practice
676:Public Finance in Theory and Practice
451:too many or overly lengthy quotations
330:There's no such thing as a free lunch
806:The Elgar Companion to Public Choice
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772:The Economics of Earmarked Taxes
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170:. In its use for assessing the
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837:Are public goods public goods?
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186:(1919), two economists of the
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800:The Case For Tax-Target Plans
674:and Peggy B. Musgrave, 1973.
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576:preference revelation problem
726:The Theory of Public Finance
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148:. It bases taxes to pay for
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724:Richard A. Musgrave, 1959.
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537:the claims made and adding
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374:the claims made and adding
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259:the claims made and adding
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316:of taxpayers, rather than
155:on a politically-revealed
831:Taxation & Tax Policy
750:James M. Buchanan, 1986.
324:More efficient allocation
865:Hildreth, W. Bartley -
756:American Economic Review
458:summarize the quotations
215:constitutional economics
174:of taxes and appraising
861:Principles of Economics
804:Holcombe, Randall G. -
656:Encyclopædia Britannica
601:Decentralized knowledge
320:, are given more weight
50:more precise citations.
853:Samuelson, Paul A. -
792:Hansjürgens, Bernd -
621:New public management
894:Public choice theory
829:Cordes, Joseph J. -
823:Ghosh & Ghosh -
310:Consumer sovereignty
140:is a concept in the
93:factual accuracy is
817:Thirsk, Wayne R. -
798:Brown, Daniel J. -
672:Richard A. Musgrave
318:government planners
195:income distribution
899:Theory of taxation
859:Mankiw, Gregory -
786:Marciano, Alain -
631:Rational ignorance
571:free-rider problem
522:possibly contains
359:possibly contains
244:possibly contains
157:willingness to pay
142:theory of taxation
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839:p. 149 describes
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184:Erik Lindahl
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690:Description
636:User charge
611:Foot voting
314:preferences
182:(1896) and
48:introducing
888:Categories
642:References
580:tax choice
531:improve it
466:Wikisource
417:Fuel taxes
368:improve it
253:improve it
172:efficiency
165:allocating
31:references
694:contents.
596:Club good
535:verifying
503:Criticism
462:Wikiquote
449:contains
372:verifying
257:verifying
102:talk page
660:preview.
590:See also
430:Passages
340:Examples
225:Overview
95:disputed
529:Please
366:Please
251:Please
44:improve
211:wealth
161:prices
33:, but
762:-250.
715:-116.
144:from
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814:1997
692:and
569:The
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136:The
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