a somewhat different tax for every service, or good that he consumes. If each person's tax price is set equal to the marginal benefits received at the ideal service level, each person is made better off by provision of the public good and may accordingly agree to have that service level provided. Lindahl equilibrium Lindahl equilibrium is a state of economic equilibrium under a Lindahl tax as well as a method for finding the optimum level for the supply of public goods or services that happens when the total per-unit price paid by each individual equals the total per-unit cost of the public good. It can be shown that an equilibrium exists for different environments. Therefore, the Lindahl equilibrium describes how efficiency can be sustained in an economy with personalised prices. Leif Johansen gave the complete interpretation of the concept of "Lindahl equilibrium", which assumes that household consumption decisions are based on the share of the cost they must provide for the supply of the particular public good. The necessary and sufficient condition for such an equilibrium being: (i) the sum of the declared willingness be greater than the cost of provision and (ii) the minimum willingness to pay is positive and non-zero. The importance of Lindahl equilibrium is that it fulfills the Samuelson condition and is therefore Pareto efficient, despite the good in question being a public one. It also demonstrates how efficiency can be reached in an economy with public goods by the use of personalised prices. The personalised prices equate the individual valuation for a public good to the cost of the public good. Major works of Erik Lindahl Die Gerechtigkeit der Besteurung, 1919. (trans. as "Just Taxation: A positive solution", 1958) "Some Controversial Questions in the Theory of Taxation", Scope and Means of Monetary Policy, two volumes, 1929. (privately published - see Lindahl, 1930) "The Place of Capital in the Theory of Price", 1929, Ekonomisk Tidskrift. Methods of Monetary Policy, 1930. "The Concept of Income", 1933, Essays in Honor of Gustav Cassel. "A Note on the Dynamic Pricing Problem", 1934, (published later) "The Problem of Balancing the Budget", 1935, Ekon Tidsk. Studies in the Theory of Money and Capital, 1939. (English translations of 1929, 1930, 1935). "Metodfragor inom den dynamiska teorien", 1942, Ekon Tidsk. "Sweden's Monetary Policy and Tax Policy After the War", 1943, Ekon Tidsk. "Some Aspects of the Inflation Problem", 1948, Nationalok Tidsk. "On