Abstract
In this note I discuss how to handle taxes in a cost-benefit analysis (CBA). In addition the shadow price of taxes in a CBAis related to the concepts of the marginal cost of public funds (MCPF) and the marg i n a l excess burden (MEB) of taxes. Finally some estimates of the marginal cost of public funds for Spain and Sweden are re p o rted and contrasted to an alternative approach to the treatment of taxes in a CBA.
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