The taxation of household durable goods

Agnar Sandmo

Finnish Economic Papers, 1988, vol. 1, issue 1, 13-24

Abstract: Starting from issues raised in current debates about tax policy, this paper considers the optimal taxation of durable consumer goods in the context of a two period overlapping generations model. The consumer model is one where individuals work in the first period, being retired in the second, and invest their savings either in financial assets or in durable goods. The optimum tax analysis considers several problems of tax policy under alternative assumptions about the policy instruments available to the government and about the nature of preferences. The role of the compensated cross-elasticities between labour supply, savings and durable goods is emphasized.

Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:1:y:1988:i:1:p:13-24

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