SFB 303 Discussion Paper No. A - 159

Author: Dierker, Egbert
Title: The Optimality of Boiteux-Ramsey Pricing
Abstract: Consider an economy with one public enterprise that is subject to a budgetary constraint and charges prices according to the first order necessary conditions suggested by Boiteux (1956) or, in another context, by Ramsey (1927). We state (restrictive) conditions sufficient to ensure that the resulting allocation is second best.
Creation-Date: 1988
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