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Commodity Tax Harmonisation and Public Goods


  • Sophia Delipalla



This paper examines the welfare effects of commodity tax harmonisation incorporating in the analysis the important feature that tax revenue is not returned to the consumer as a lump sum but it is used to finance a local public good. Only under certain conditions, commodity tax harmonisation is potentially welfare improving. Introducing both transfers between consumers and transfers between governments, it is shown, inter alia, that the analysis is sensitive to the kind of transfers assumed, suggesting that arguments that rely on international transfers should be handled with care.

Suggested Citation

  • Sophia Delipalla, 1996. "Commodity Tax Harmonisation and Public Goods," Studies in Economics 9603, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:9603

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    References listed on IDEAS

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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Lockwood, Ben, 2001. "Tax competition and tax co-ordination under destination and origin principles: a synthesis," Journal of Public Economics, Elsevier, vol. 81(2), pages 279-319, August.

    More about this item


    Tax Harmonisation; Public Goods; International Transfers;

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods


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