This paper develops a methodology for computing the benefit incidence of
mixed goods. The paper draws on a theoretically based framework for ana
lyzing the benefit incidence of public goods but extends this framework con
ceptually and makes it more operational through integrating it with recent
work on the determinants of municipal expenditures. The new methodology
is applied to municipal expenditures in Canada, and the benefit incidence of
these expenditures is found to be regressive.
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