scholarly journals Ramsey Strikes Back: Optimal Commodity Taxes and Redistribution in the Presence of Salience Effects

2018 ◽  
Author(s):  
Hunt Allcott ◽  
Benjamin Lockwood ◽  
Dmitry Taubinsky
Keyword(s):  
Commodity Taxes ◽  
Optimal Commodity

Optimal Commodity Taxes in Australia

2002 ◽  
Vol 35 (1) ◽  
pp. 45-54 ◽  
Author(s):  
Paul Blacklow ◽  
Ranjan Ray
Keyword(s):  
Commodity Taxes ◽  
Optimal Commodity

Ramsey Strikes Back: Optimal Commodity Taxes and Redistribution in the Presence of Salience Effects

2018 ◽  
Vol 108 ◽  
pp. 88-92 ◽  
Author(s):  
Hunt Allcott ◽  
Benjamin Lockwood ◽  
Dmitry Taubinsky
Keyword(s):  
Broad Class ◽  
Utility Functions ◽  
Income Taxation ◽  
Labor Income ◽  
Commodity Taxes ◽  
Optimal Tax ◽  
Making Choices ◽  
Labor Income Taxation ◽  
Optimal Commodity ◽  
Ramsey Rule

An influential result in modern optimal tax theory, the Atkinson and Stiglitz (1976) theorem, holds that for a broad class of utility functions, all redistribution should be carried out through labor income taxation, rather than differential taxes on commodities or capital. An important requirement for that result is that commodity taxes are known and fully salient when consumers make income-determining choices. This paper allows for the possibility consumers may be inattentive to (or unaware of) some commodity taxes when making choices about income. We show that commodity taxes are useful for redistribution in this setting. In fact, the optimal commodity taxes essentially follow the classic “many person Ramsey rule” (Diamond 1975), scaled by the degree of inattention. As a result, to the extent that commodity taxes are not (fully) salient, goods should be taxed when they are less elastically consumed, and when they are consumed primarily by richer consumers. We extend this result to the setting of corrective taxes, and show how non-salient corrective taxes should be adjusted for distributional reasons.

Redistributive impact of ‘optimal’ commodity taxes

1989 ◽  
Vol 30 (4) ◽  
pp. 385-388 ◽  
Author(s):  
P.V. Srinivasan
Keyword(s):  
Commodity Taxes ◽  
Optimal Commodity

scholarly journals Optimal Commodity Taxes with Tourist Demand

2004 ◽  
Vol 4 (2) ◽  
pp. 25-38 ◽  
Author(s):  
Sinikka Hämäläinen
Keyword(s):  
Commodity Taxes ◽  
Tourist Demand ◽  
Optimal Commodity

Optimal Commodity Taxes and Tax Reforms

2018 ◽  
pp. 179-206
Author(s):  
Ranjan Ray
Keyword(s):  
Tax Reforms ◽  
Commodity Taxes ◽  
Optimal Commodity

Optimal Commodity Taxes with Tourist Demand

2005 ◽  
Vol 11 (1) ◽  
pp. 121-122
Author(s):  
Sinikka H�m�l�inen
Keyword(s):  
Commodity Taxes ◽  
Tourist Demand ◽  
Optimal Commodity

scholarly journals Household bargaining, spouses’ consumption patterns and the design of commodity taxes

2019 ◽  
Author(s):  
Helmuth Cremer ◽  
Jean-Marie Lozachmeur ◽  
Kerstin Roeder
Keyword(s):  
Consumption Patterns ◽  
Household Bargaining ◽  
Tax Rates ◽  
Commodity Taxes ◽  
Good Will ◽  
Optimal Commodity

Abstract We study optimal commodity taxes under household bargaining. We focus on the taxation of ‘female’ and ‘male’ products. The expressions for the tax rates include Pigouvian and incentive terms. When the female spouse has the lower bargaining weight, the Pigouvian term calls for a subsidization of the ‘female good’, and a taxation of the ‘male good’. The incentive term depends on the distribution of bargaining weights across couples. When the bargaining weight of the female spouse increases with wages, the female good will be consumed in larger proportion by more productive couples. In this case the Pigouvian term is mitigated.

Household composition and optimal commodity taxes

1989 ◽  
Vol 1 (3) ◽  
pp. 213-224 ◽  
Author(s):  
Ranjan Ray
Keyword(s):  
Household Composition ◽  
Commodity Taxes ◽  
Optimal Commodity

Budget share and optimal commodity taxes without computation

1981 ◽  
Vol 7 (3) ◽  
pp. 265-271
Author(s):  
Yves Balcer ◽  
Efraim Sadka
Keyword(s):  
Budget Share ◽  
Commodity Taxes ◽  
Optimal Commodity

Sensitivity of optimal commodity taxes to relaxing leisure/goods separability and to the wage rate

1987 ◽  
Vol 24 (3) ◽  
pp. 273-277 ◽  
Author(s):  
M.N. Murty ◽  
Ranjan Ray
Keyword(s):  
Wage Rate ◽  
Commodity Taxes ◽  
Optimal Commodity ◽  
Leisure Goods
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