Atkinson and Stiglitz theorem in the presence of a household production sector

Helmuth Cremer and Firouz Gahvari

Economics Letters, 2015, vol. 126, issue C, 91-95

Abstract: Atkinson and Stiglitz (1976) uniform commodity tax result does not hold when (at least) one of the goods is produced within the household. The result is restored if preferences are weakly-separable in market goods versus leisure and household goods.

Keywords: Atkinson and Stiglitz theorem; Household production; Weak-separability (search for similar items in EconPapers)
JEL-codes: H2 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Working Paper: Atkinson and Stiglitz theorem in the presence of a household production sector (2014)
Working Paper: Atkinson and Stiglitz theorem in the presence of a household production sector (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:126:y:2015:i:c:p:91-95

DOI: 10.1016/j.econlet.2014.11.020

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