Who Should Pay for Infrastructure?

6 Pages Posted: 27 Mar 2018

See all articles by Richard M. Bird

Richard M. Bird

University of Toronto - Joseph L. Rotman School of Management; Georgia State University - Andrew Young School of Public Policy

Enid Slack

University of Toronto Munk Centre for International Studies

Date Written: March 1, 2018

Abstract

Consumers should pay directly for many services furnished by the public sector, particularly such congestible services as roads or water and sewerage provided to easily identifiable users. However, these goods are often funded or partly subsidized through general taxes. Politicians seldom opt for user charges because of a number of public biases and misunderstandings. This article discusses the efficiency of user charges, the misunderstandings and biases those charges face, and how those obstacles may be overcome.

Keywords: infrastructure, user fees, user charges, general taxation, public investment

JEL Classification: H54, H11, H27

Suggested Citation

Bird, Richard Miller and Slack, Enid, Who Should Pay for Infrastructure? (March 1, 2018). Regulation, Vol. 41, No. 1, Spring 2018; Rotman School of Management Working Paper No. 3147198. Available at SSRN: https://ssrn.com/abstract=3147198

Richard Miller Bird (Contact Author)

University of Toronto - Joseph L. Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
905-274-8841 (Phone)

Georgia State University - Andrew Young School of Public Policy

International Studies Program
Atlanta, GA 30303-3083
United States

HOME PAGE: http://www.aysps.gsu.edu

Enid Slack

University of Toronto Munk Centre for International Studies ( email )

Toronto, Ontario
Canada

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