Aronsson, Thomas () (Department of Economics, Umeå University) Sjögren, Tomas () (Department of Economics, Umeå University) Witterblad, Mikael () (Department of Economics, Umeå University)
Abstract
This paper concerns optimal income and commodity taxation in a two-type overlapping generations model, where used durable goods are traded in a second-hand market. As second-hand transactions are difficult to observe, we assume that the government is unable to directly control second-hand transactions via commodity taxation. A basic question is how the government in this case may use the second-hand market as a channel for relaxation of the self-selection constraint. We show how the appearance of a second-hand market for used durable goods affects the optimal use of labor income and capital income taxation as well as the optimal use of commodity taxation on new durable goods.
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Publisher Info
Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number
732.
Length: 46 pages Date of creation: 10 Mar 2008 Date of revision: Handle: RePEc:hhs:umnees:0732
Contact details of provider: Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden Phone: 090 - 786 61 42 Fax: 090 - 77 23 02 Email: Web page: http://www.econ.umu.se/ More information through EDIRC
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