Optimal commodity taxation and consumer welfare: an empirical application to the UAE

Azzeddine Azzam and Belaid Rettab

International Journal of Economic Policy in Emerging Economies, 2015, vol. 8, issue 3, 191-212

Abstract: We compute the optimal commodity tax rates and compare their associated welfare impact with the welfare impact of a uniform tax rate on UAE households with and without exempting food. Household data is used within a linear expenditure system that considers joint allocation of leisure and seven broad commodity groups. We find that households are worse off with a uniform tax when food is not taxed.

Keywords: optimal taxation; United Arab Emirates; UAE; consumer welfare; linear expenditure system; LES; commodity taxes; uniform tax rates; food exemption; optimisation; leisure. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=72311 (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: https://EconPapers.repec.org/RePEc:ids:ijepee:v:8:y:2015:i:3:p:191-212

Access Statistics for this article

More articles in International Journal of Economic Policy in Emerging Economies from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().