ABSTRACT
We pointed out in discussing the importance of fiscal policy for household planning that this question has not hitherto been dealt with in a systematic way. The literature in this field is very scanty. It is a different matter, however, when we turn to the question of the importance of budget policy for the planning of firms. Right from the beginning of the theory of public finance interest has centred upon the effects of fiscal policy, and especially taxation, on the size and composition of production as well as on prices. It is true that parts of this theory have been formulated as incidence theory in the partial equilibrium sense, but with simple re-interpretations we can easily produce a theory of the effects of fiscal policy measures on the planning of firms. The problem of the planning of firms is, of course, just as important to the problem of fiscal policy as is household planning.
