Taxing sales to tourists over time
An 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.
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.:
- Bird, Richard M., 1992. "Taxing tourism in developing countries," World Development, Elsevier, vol. 20(8), pages 1145-1158, August.
- Bonham, Carl & Fujii, Edwin & Im, Eric & Mak, James, 1992.
"The Impact of the Hotel Room Tax: An Interrupted Time Series Approach,"
National Tax Journal,
National Tax Association, vol. 45(4), pages 433-41, December.
- Carl Bonham & Edwin Fujii & Eric Im & James Mak, 1991. "The Impact of the Hotel Room Tax: An Interrupted Time Series Approach," Working Papers 199124, University of Hawaii at Manoa, Department of Economics.
- Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150, March.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:9810003. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.