ABSTRACT
The origin of the postualted action is simple : a consumer with given preferences and a given income faces a set of goods and services each of which can be traded at a given price; for each of these goods, the consumer can, taking his tastes, his income, and the prices of goods as fixed, determine the quantities he desires. The alternative approach recognizes even at the level of individual adjustment that public goods, in whatever quantities they are supplied, are made available equally to every citizen and as a consequence utility functions are defined for private goods and tax-prices and maximized subject to budget constraints formulated in terms of given prices for private goods, but given quantities of public goods. If a tax burden—whose value is subjectively determined in relation to the value of public benefits received—is deemed unfair, a citizen will feel coerced and because of this will be motivated to participate in the political process.
