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|
|Publication status:||Published in Economics Letters, Elsevier, 2004, 83 (1), pp.49-54. <10.1016/j.econlet.2003.09.026>|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00106895|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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