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Abstract

We present an aggregate four good model (consumption, in- vestment and two government goods) in which the current flows of one government good are in part pure public intermediate goods. The other public goods has "final" services for house- holds. We are interested in a benefit approach to charging for government services that includes government services flowing directly to firms. The legal system is our representative inter- mediate public good and benefit charges to firms should include part of the maintenance of the legal system.

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