Taxing sales to tourists over time
AbstractAn optimal control model shows how a jurisdiction can tax tourists in a way that maximizes its revenues net of its costs in serving tourists: By relating its tax rate to its popularity with tourists. When its popularity waxes, it should raise the tax rate; when its popularity wanes, it should lower the tax rate. Extensions consider the effects on the tax of the discount rate, tourist prices, tourist congestion, and of the rise in the relative cost of services that is due to rising productivity in manufacturing. Computer simulations generate a concave tax path for a small city launching a tourism program.
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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 9810003.
Date of creation: 15 Oct 1998
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Find related papers by JEL classification:
- D6 - Microeconomics - - Welfare Economics
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- H - Public Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-12-09 (All new papers)
- NEP-PBE-1998-12-09 (Public Economics)
- NEP-PUB-1998-12-09 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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