IDEAS home Printed from https://ideas.repec.org/p/kud/epruwp/00-16.html
   My bibliography  Save this paper

Optimum Taxation and the Allocation of Time

Author

Listed:
  • Henrik Jacobsen Kleven

Abstract

This paper deals with optimum commodity taxation in Becker's (1965) model of the allocation of time. While the existing public finance literature emphasizes the role of cross elasticities with leisure, I find that the optimal tax system crucially depends on factor shares and elasticities of substitution in household production. In the special case of Leontieff technology, the optimum tax rule depends solely on factor shares and, furthermore, this simple rule maintains the first best allocation. The Becker approach implies, for example, that the social optimum involves a preferential tax treatment of consumer services and possibly even exclusion from the tax base.

Suggested Citation

  • Henrik Jacobsen Kleven, "undated". "Optimum Taxation and the Allocation of Time," EPRU Working Paper Series 00-16, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:epruwp:00-16
    as

    Download full text from publisher

    File URL: http://web.econ.ku.dk/epru/files/wp/00-16.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Strand, Jon, 2005. "Tax distortions, household production, and black-market work," European Journal of Political Economy, Elsevier, vol. 21(4), pages 851-871, December.
    2. Alessandro Balestrino, 2002. "On the Optimal Fiscal Treatment of Family Size," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(2), pages 140-157, February.
    3. Kleven, Henrik Jacobsen, 2004. "Optimum taxation and the allocation of time," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 545-557, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kud:epruwp:00-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Hoffmann (email available below). General contact details of provider: https://edirc.repec.org/data/epcbsdk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.