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Optimal Commodity Taxation and Household Consumption Activities

Author

Listed:
  • Firouz Gahvari

    (Virginia Polytechnic Institute and State University)

  • C.C. Yang

    (Institute of Economics, Academia Sinica)

Abstract

This article reexanunes the Ramsey tax problem using Becker's household-production approach. It assumes that market-purchased goods and time are used m fixed but different proportions in generating consumption activities. It derives a generalized version of Atkinson and Stiglitz's findings regarding the relationship between optimal tax rates and the structure of preferences (for consumption activities). It then reexammes their three main results in this regard.

Suggested Citation

  • Firouz Gahvari & C.C. Yang, 1993. "Optimal Commodity Taxation and Household Consumption Activities," Public Finance Review, , vol. 21(4), pages 479-487, October.
    • Handle: RePEc:sae:pubfin:v:21:y:1993:i:4:p:479-487
    DOI: 10.1177/109114219302100408
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    References listed on IDEAS

    as
    1. Diamond, P. A., 1975. "A many-person Ramsey tax rule," Journal of Public Economics, Elsevier, vol. 4(4), pages 335-342, November.
    2. Wildasin, David E, 1977. "Distributional Neutrality and Optimal Commodity Taxation," American Economic Review, American Economic Association, vol. 67(5), pages 889-898, December.
    3. A. B. Atkinson & N. H. Stern, 1974. "Pigou, Taxation and Public Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(1), pages 119-128.
    4. Atkinson, A. B. & Stiglitz, J. E., 1972. "The structure of indirect taxation and economic efficiency," Journal of Public Economics, Elsevier, vol. 1(1), pages 97-119, April.
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    Cited by:

    1. Sam Allgood, 2009. "The Collective Household, Household Production and Efficiency of Marginal Reforms," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(5), pages 749-771, October.
    2. Cristian F. Sepulveda, 2019. "Time-saving Goods, Time Inequalities, and Optimal Taxation," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1902, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Lim Jean & Rodríguez-Zamora Carolina, 2010. "The Optimal Tax Rule in the Presence of Time Use," Working Papers 2010-05, Banco de México.
    4. Kleven, Henrik Jacobsen, 2004. "Optimum taxation and the allocation of time," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 545-557, March.
    5. Marcelo Arbex & Enlinson Mattos, 2015. "Optimal sales tax rebates and tax enforcement consumers," Oxford Economic Papers, Oxford University Press, vol. 67(2), pages 479-493.
    6. Boadway, Robin & Gahvari, Firouz, 2006. "Optimal taxation with consumption time as a leisure or labor substitute," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1851-1878, November.
    7. Cristian F. Sepulveda, 2022. "Time-saving goods, time inequalities and optimal commodity taxation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(1), pages 84-109, February.
    8. Borger, Bruno De, 2011. "Optimal congestion taxes in a time allocation model," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 79-95, January.

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