Why, according to Tiebot, does a satisfactory theory of public finance require three objectives? What are the three objectives?

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Karyth Cara | College Teacher | (Level 1) Senior Educator

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Tiebot's assumptions are:

  • perfect mobility of consumers to ideal communities
  • perfect information about communities, amenities and goods available
  • consumption of goods does not detract form others' consumption, in fact renders good back to other community members

The objectives ientified for government are that:

  • government ascertains consumers wants
  • government taxes according to known wants
  • government acts so that "revenue-expenditure pattern for goods and services [will] adapt to consumer preference"

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