Optimal commodity grouping in a partial equilibrium framework
This note characterizes, in a partial equilibrium economy with a single agent, which commodities should be taxed whenever there is only one available tax rate. We show that commodities with low price elasticities should be imposed; luxuries are eventually exempted.
|Date of creation:||2004|
|Date of revision:|
|Publication status:||Published, Economics Letters, 2004, 83, 1, 49-54|
|Note:||View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00106895|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/|
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