Optimal Commodity Taxation in the Presence of Tourists

Nishaal Gooroochurn

International Economic Journal, 2009, vol. 23, issue 2, pages 197-209

Abstract: This paper sets up a simple extension of the basic Ramsey model to include tourism and it provides a theoretical analysis of the efficiency, equity and disincentive of work effects of commodity taxation in the presence of tourists. Tourism is a special export commodity for which the effect of a commodity tax is a mixture of domestic and export tax effects. It is found that commodity taxation has a lower marginal excess burden with tourists than without, although this may not be the case when tourist arrival is endogenised. We also found that taxing tourism has a positive equity effect because domestic demand for tourism products is mostly from richer household groups. Finally, since tourism products are complementary to leisure, taxing tourism has also a positive disincentive of work effect.

Keywords: Optimal taxation; tourism (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:intecj:v:23:y:2009:i:2:p:197-209

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

International Economic Journal is edited by Jaymin Lee

More articles in International Economic Journal from Korean International Economic Association
Series data maintained by Christopher F. Baum ().