The generalised anti-inverse elasticity rule: An existence result

Junichi Minagawa and Thorsten Upmann

Mathematical Social Sciences, 2021, vol. 114, issue C, 110-115

Abstract: We consider an optimal commodity taxation problem under a consumption target with many consumer types and prove the existence of an optimal solution for this problem. The optimal solution obeys taxation rules that are contrary to standard ones such as the inverse-elasticity rule. For a single consumer type, we show that the necessary and sufficient conditions for the optimal solution obey the uniform pricing rule.

Keywords: Anti-inverse elasticity rule; Consumption target; Existence of an optimal solution; Optimal commodity taxation; Uniform pricing (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:114:y:2021:i:c:p:110-115

DOI: 10.1016/j.mathsocsci.2021.08.005

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