A Theory of Optimum Tariff Under Revenue Constraint

Tatsuo Hatta and Y. Ogawa

ISER Discussion Paper from Institute of Social and Economic Research, The University of Osaka

Abstract: This paper analyzes the revenue-constrained optimum tariff problem. When a fixed level of tax revenue has to be collected only from tariffs, an efficient resource allocation can not be achieved by any tariff structure. Thus we need to find the optimum tariff structure as the second best resource allocation.

Date: 1999-01
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Persistent link: https://EconPapers.repec.org/RePEc:dpr:wpaper:0483

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