Contents

Executive Summary 1

CHAPTER 1
Introduction 5
1.1 Motivation 7
1.2 Objevtives and Organization 8

CHAPTER 2
Summary of Previous Literatiure 11
2.1 Analysis of Pure Public Goods 13
2.2 Summary of Previous Literature  17
2.3 Tax-Benefit Model 21

CHAPTER 3
Data and Methodology 19
3.1 Analysis of the Distribution of Tax Burden 28
3.2 Analysis of the Distribution of Benefits 36

CHAPTER 4
Analysis of Net Tax Burden 51
4.1 Analysis of the Tax Burden by Income Decile 37
4.2 Progressivity and Horizontal Equity of tax 40
4.3 Analysis of Net tax Burden 41

CHAPTER 5
Summary and Implications  67
5.1 Summary of Findings 69
5.2 Implications and Future Direction 71

Reference 75