Conclusion
From the viewpoint of pure theory the basic contribution of this paper is in identifying both the consumption inducing and consumption displacing tendencies when mixed public goods are financed by income taxes. We have come to recognize that the provision of mixed public goods is conducive to economic growth if they are consumption displacing in nature.
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Rao, T.V.S.R., Kalpagam, U. Mixed public goods, consumption externality, and economic growth. Zeitschr. f. Nationalökonomie 37, 385–394 (1977). https://doi.org/10.1007/BF01291380
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DOI: https://doi.org/10.1007/BF01291380