IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-38990-8_3.html
   My bibliography  Save this book chapter

Tax Policy

In: Public Finance in an Overlapping Generations Economy

Author

Listed:
  • Toshihiro Ihori

    (University of Tokyo)

Abstract

In Chapter 3, we investigate normative aspects of tax policy in an overlapping generations growth model. The set of commodity taxes that minimizes the deadweight loss is called Ramsey taxes. The Ramsey rule has a simple form (see Chapter 1). Under certain simplifying conditions, Ramsey taxes are proportional to the sum of the reciprocal of the elasticity of demand and supply. The tax rate should be set so that the increase in deadweight loss per extra dollar raised is the same for each commodity. The Ramsey rule is a useful criterion for static efficiency. In Chapter 2, on the other hand, we have shown that the golden rule is a useful criterion for dynamic efficiency. Thus, this chapter investigates the relationship between the Ramsey rule and the golden rule when lump-sum taxes are not available in the overlapping generations growing economy.

Suggested Citation

  • Toshihiro Ihori, 1996. "Tax Policy," Palgrave Macmillan Books, in: Public Finance in an Overlapping Generations Economy, chapter 3, pages 42-72, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-38990-8_3
    DOI: 10.1057/9780230389908_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-38990-8_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.