Commodity Tax Reforms In A Many Consumers Economy: A Viable Decision-Making Procedure
This paper deals with efficiency and distributional effects of commodity tax reforms in economies with heterogeneous individuals. It contributes to the literature in three ways. First, a decision rule based on revenue potentialities the ratio between marginal revenue and the tax base - is originally developed with reference to a many consumers economy. The relevance lies in the fact that these indicators do not depend on measures of utility. Second, the connection with former literature is analyzed. Third, a comprehensive and progressive decision-making procedure relying on revenue potentialities is defined. Overall, all that policy makers need to know in order to look for improvements in efficiency and/or distribution through revenue-neutral commodity tax reforms is the revenue potentiality of each tax and the share of expenditure by poor families. An example with reference to Italian data is provided.
|Date of creation:||01 Jan 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Via Cosimo Ridolfi, 10 - 56124 PISA|
Phone: +39 050 22 16 466
Fax: +39 050 22 16 384
Web page: http://www.ec.unipi.it
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pie:dsedps:2004/44. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.