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Optimally uniform commodity taxes, taste differences and lump-sum grants

Authors
Journal
Economics Letters
0165-1765
Publisher
Elsevier
Publication Date
Volume
20
Issue
3
Identifiers
DOI: 10.1016/0165-1765(86)90035-2

Abstract

Abstract Optimal commodity taxes for an economy with many households should be at a uniform proportional rate under certain conditions. These include (i) linear and parallel Engel curves with intercepts dependent on household composition, (ii) separability between goods and labour, and (iii) optimal demogrants.

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