Uncertainty and optimally uniform commodity taxes.

A model is developed to examine the implications of uncertainty for the structure of optimal commodity taxes where a linear income tax is present. The model presupposes that consumers face uncertainty of income and commit to consumption of certain goods before this uncertainty is resolved and to ot...

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Publicado en:Southern Economic Journal Vol. 66; no. 1; pp. 156 - 168
Autores principales: Cremer, Helmuth, Gahvari, Firouz
Formato: Artículo
Publicado: Southern Economic Association July 1999
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Uncertainty and optimally uniform commodity taxes.
      aug:
        au:
          Cremer, Helmuth
          Gahvari, Firouz
      su:
        Mathematical models
        Consumption tax
        Taxation
        Uncertainty
        Economics
      sug:
        subj:
          Mathematical models
          Consumption tax
          Taxation
          Uncertainty
          Economics
      keyword: Optimal taxation
      ab: A model is developed to examine the implications of uncertainty for the structure of optimal commodity taxes where a linear income tax is present. The model presupposes that consumers face uncertainty of income and commit to consumption of certain goods before this uncertainty is resolved and to others afterward. The model reveals that optimal commodity taxes are uniform in the category of noncommitted goods if their subutility is logarithmic, that they are uniform within both categories if both subutilities are logarithmic, and that they are nonzero across categories, with the tax rate on precommitted goods being lower than the tax rate on noncommitted goods.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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