A Comparative Study of Household Consumption Patterns and Optimal Commodity Tax Rates between Korea and Japan

Joong-Ho Kook and Seok Gyu Choi
Additional contact information
Joong-Ho Kook: Yokohama City University
Seok Gyu Choi: Chonbuk National University

Korean Economic Review, 2022, vol. 38, 479-507

Abstract: This study compares consumption patterns and optimal commodity taxes between Korea and Japan using household data. We also calculate how the average optimal tax burdens in each income quintile change depending on inequality aversion. The results show that commodity groups with high spending shares in the poor (the rich) should be subsidized (taxed). The magnitudes of subsidization and/or taxation are greater in Korea than in Japan due to more unequal income distribution in Korea. Strengthening inequality aversion causes subsidization and/or taxation to increase. Our results are in line with Srinivasan (1989), Ray (1987 and 1986), and Deaton (1977). Our work contributes to related literature by presenting the optimal commodity taxes using household data of Korea and Japan, taking inequality aversion into account.

Keywords: Consumption Pattern; Optimal Commodity Tax; Household Survey; Japan; Korea (search for similar items in EconPapers)
JEL-codes: D13 D61 H21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://keapaper.kea.ne.kr/RePEc/kea/keappr/KER-20220701-38-3-05.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:kea:keappr:ker-20220701-38-3-05

Access Statistics for this article

Korean Economic Review is currently edited by Kyung Hwan Baik

More articles in Korean Economic Review from Korean Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by KEA ().