OPTIMALITY IN LOCAL DEBT LIMITATION: COMMENT

IN HIS article on the desirability and efficacy of state and local legal debt re strictions, in this Journal [1], Richard E. Wagner argues that an individual locality, acting to maximize its own welfare, will issue more debt than is socially optimal. This behavior is attributed to the fact that if t...

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Bibliographic Details
Published inNational tax journal Vol. 24; no. 1; pp. 101 - 106
Main Authors HAND, JOHN H., MITCHELL, WILLIAM E.
Format Journal Article
LanguageEnglish
Published Washington National Tax Association 01.03.1971
The University of Chicago Press
University of Chicago Press
Subjects
Borrowing
Capitalization
Consumption
Debt
Debt financing
Debt limits
Discount rates
Equilibrium
Government securities
Income taxes
Interest rates
Investment return rates
Local government
Public goods
Return on capital
Tax incentives
Taxes
Voters
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Summary:IN HIS article on the desirability and efficacy of state and local legal debt re strictions, in this Journal [1], Richard E. Wagner argues that an individual locality, acting to maximize its own welfare, will issue more debt than is socially optimal. This behavior is attributed to the fact that if the decision units involved have some...
ISSN:0028-0283
1944-7477
DOI:10.1086/NTJ41792245