Details
| Original language | English |
|---|---|
| Pages (from-to) | 323-338 |
| Number of pages | 16 |
| Journal | FINANZARCHIV |
| Volume | 62 |
| Issue number | 3 |
| Publication status | Published - Sept 2006 |
Abstract
This paper makes a fresh attempt at characterizing optimal commodity taxes. Under the usual assumptions, an extremely simple expression for second-best commodity taxes is derived, showing tax rates as functions of observable variables only, rather than as functions of unobservable variables such as compensated cross-elasticities. The main formula is independent of special preferences and of the number of commodities. It has a simple economic meaning and could be particularly useful for empirical research. Examples and remarks on the normalization problem are provided.
Keywords
- Optimal commodity taxation, Ramsey rule
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- Finance
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In: FINANZARCHIV, Vol. 62, No. 3, 09.2006, p. 323-338.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - A new approach to optimal commodity taxation
AU - Homburg, Stefan
PY - 2006/9
Y1 - 2006/9
N2 - This paper makes a fresh attempt at characterizing optimal commodity taxes. Under the usual assumptions, an extremely simple expression for second-best commodity taxes is derived, showing tax rates as functions of observable variables only, rather than as functions of unobservable variables such as compensated cross-elasticities. The main formula is independent of special preferences and of the number of commodities. It has a simple economic meaning and could be particularly useful for empirical research. Examples and remarks on the normalization problem are provided.
AB - This paper makes a fresh attempt at characterizing optimal commodity taxes. Under the usual assumptions, an extremely simple expression for second-best commodity taxes is derived, showing tax rates as functions of observable variables only, rather than as functions of unobservable variables such as compensated cross-elasticities. The main formula is independent of special preferences and of the number of commodities. It has a simple economic meaning and could be particularly useful for empirical research. Examples and remarks on the normalization problem are provided.
KW - Optimal commodity taxation
KW - Ramsey rule
UR - http://www.scopus.com/inward/record.url?scp=34249077253&partnerID=8YFLogxK
U2 - 10.1628/001522106X153392
DO - 10.1628/001522106X153392
M3 - Article
AN - SCOPUS:34249077253
VL - 62
SP - 323
EP - 338
JO - FINANZARCHIV
JF - FINANZARCHIV
SN - 0015-2218
IS - 3
ER -